Is Vikas Proppant overvalued or undervalued?

As of 25 April 2023, the valuation grade for Vikas Proppant has moved from does not qualify to risky, indicating a significant shift in its perceived investment quality. The company is currently considered overvalued based on its financial ratios, which include a PE ratio of -2.01, an EV to EBITDA of -4.27, and a Price to Book Value of 0.11. These figures suggest that the company's earnings and cash flow metrics are in a concerning state.
In comparison to its peers, Vikas Proppant's ratios starkly contrast with those of Godrej Industries, which has a PE ratio of 46.63 and an EV to EBITDA of 34.36, reflecting a much healthier valuation. Additionally, Solar Industries is deemed very expensive with a PE ratio of 123.77, further highlighting the challenges faced by Vikas Proppant. The company's recent stock performance has also been poor, with a year-to-date return of -22.45% compared to a 5.62% gain in the Sensex, reinforcing the notion that it is overvalued in the current market context.