Is Suvidhaa Info. overvalued or undervalued?

As of 25 April 2023, the valuation grade for Suvidhaa Info. has moved from does not qualify to risky, indicating a significant change in its perceived investment quality. The company is currently assessed as overvalued, particularly given its troubling financial ratios. The PE ratio stands at -4.82, while the EV to EBITDA ratio is at -9.43, both of which signal negative earnings and operational challenges. Additionally, the ROCE and ROE are notably poor at -52.40% and -44.29%, respectively.
In comparison to its peers, Suvidhaa Info. lags significantly behind established companies like Tata Consultancy Services Ltd., which has a PE ratio of 25.23, and Infosys Ltd., with a PE of 24.32. The stark contrast in valuation metrics highlights the risk associated with investing in Suvidhaa Info. Furthermore, the company's stock performance has been disappointing, with a year-to-date decline of 43.01%, compared to a 5.57% increase in the Sensex, reinforcing the notion that it is currently overvalued in the market.