Is Suumaya Corp. overvalued or undervalued?

As of 25 April 2023, Suumaya Corp. has moved from a valuation grade of "does not qualify" to "risky." The company is currently considered overvalued based on its financial ratios, which include a PE Ratio of -0.02, an EV to EBIT of -0.03, and an EV to Sales of 5.39. These negative ratios indicate significant financial distress, particularly in terms of profitability and capital efficiency.
In comparison to its peers, Suumaya Corp. stands out unfavorably against companies like MMTC Ltd., which has a PE Ratio of 119.39, and PTC India Ltd., which is rated "very attractive" with a PE Ratio of 9.02. The stark contrast in valuation metrics highlights the challenges Suumaya Corp. faces within the garments and apparel industry. Additionally, the company's stock performance has lagged significantly behind the Sensex, with a 1-year return of -34.49% compared to the Sensex's 7.57%, reinforcing the notion that the stock is overvalued in its current state.