Is Trio Merc. Trad. overvalued or undervalued?

As of 17 November 2025, the valuation grade for Trio Merc. Trad. has moved from very expensive to risky, indicating a significant shift in its perceived value. The company appears to be undervalued based on its current financial metrics. Key ratios include a PE ratio of -37.37, an EV to EBITDA of -5.28, and a Price to Book Value of 0.22, all of which suggest that the stock is trading at a low valuation relative to its earnings and assets.
In comparison to its peers, Trio Merc. Trad. stands out with a notably lower PE ratio than Bajaj Finance, which has a PE of 34.85, and Life Insurance, which boasts a PE of 11.33. The company's negative ROCE of -3.72% and ROE of -0.59% further emphasize its struggles relative to the industry. Despite recent stock performance showing a 5.48% return over the past month compared to a 1.19% return for the Sensex, the long-term outlook remains concerning, with a year-to-date decline of 35.29%. Overall, Trio Merc. Trad. is positioned as undervalued within the current market context.