Is Tricom Fruit overvalued or undervalued?

As of 25 April 2023, the valuation grade for Tricom Fruit has moved from does not qualify to risky, indicating a significant downgrade in its investment appeal. The company is currently deemed overvalued, with a PE ratio of -0.59 and an EV to EBITDA ratio of 0.00, which reflects negative earnings and suggests that the market is pricing in substantial risks. Additionally, the Price to Book Value stands at -0.06, further highlighting the company's financial challenges.
In comparison to its peers, Tricom Fruit's valuation metrics are starkly unfavorable. For instance, Hindustan Unilever has a PE ratio of 53.88, while Nestle India shows an even higher PE of 75.2, both categorized as very expensive. The stark contrast in valuation ratios underscores Tricom's precarious position within the FMCG sector. Notably, despite the company's recent stock performance showing a year-to-date return of 24.67%, it remains overshadowed by the Sensex's 5.62% return, indicating that while the stock has outperformed the index recently, its overall valuation remains concerning.