Is Techindia Nirman overvalued or undervalued?

As of 25 April 2023, the valuation grade for Techindia Nirman has moved from does not qualify to risky, indicating a significant downgrade in its investment attractiveness. The company is currently assessed as overvalued, particularly highlighted by its PE ratio of -22.86, EV to EBIT of -116.35, and ROE of -4.16%. These ratios suggest that the company is struggling to generate profits and is facing substantial operational challenges.
In comparison to its peers, Techindia Nirman stands out unfavorably; for instance, Altius Telecom has a PE ratio of 52.97 and an EV to EBITDA of 11.81, both indicating a much healthier valuation. Other peers like Embassy Office REIT and Inventurus Knowledge also exhibit strong valuations with PE ratios of 23.06 and 56.63, respectively. Furthermore, Techindia Nirman's stock has underperformed significantly against the Sensex, with a year-to-date decline of 51.99% compared to the Sensex's gain of 5.59%. This performance reinforces the view that the company is currently overvalued in the market.