Is Visagar Polytex overvalued or undervalued?

As of 10 October 2025, the valuation grade for Visagar Polytex has moved from risky to very attractive, indicating a significant positive shift in its valuation outlook. The company is currently considered undervalued, especially when comparing its ratios to peers. Notably, Visagar Polytex has a PE ratio of -1.44, an EV to EBITDA of -28.89, and an EV to Sales of 28.89, which are starkly different from its peers like K P R Mill Ltd, which is very expensive with a PE ratio of 41.5, and Trident, which is fairly valued with a PE ratio of 33.16.
In the context of the garments and apparels industry, Visagar Polytex's negative ratios suggest it is trading at a significant discount compared to its peers, reinforcing its undervalued status. While the stock has underperformed against the Sensex over various periods, including a YTD return of -25.96% compared to the Sensex's 5.58%, the recent grade change and valuation metrics indicate potential for recovery and growth in the future.