Is Venlon Enterpris overvalued or undervalued?

As of 25 April 2023, the valuation grade for Venlon Enterprises has moved from does not qualify to risky, indicating a significant downgrade in its financial standing. The company is considered overvalued based on its negative PE ratio of -2.21, an EV to EBITDA ratio of -11.93, and a ROCE of -107.75%. These figures suggest that the company's earnings and capital efficiency are severely lacking.
In comparison to its peers, Venlon's valuation metrics starkly contrast with those of Garware Hi Tech, which has a PE ratio of 31.43, and AGI Greenpac, with a PE of 17.02. This highlights that Venlon is not only underperforming but also priced unfavorably relative to its industry counterparts. Additionally, while Venlon's stock has shown a YTD return of -25.33%, the Sensex has gained 5.61%, further emphasizing its underperformance in the market.