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 improvement in its perceived value. The company is currently considered undervalued, especially when compared to its peers. Key ratios highlight this situation: the PE ratio stands at -1.44, the EV to EBITDA is -28.89, and the EV to Sales is 28.89, all suggesting that the market may not be fully recognizing the company's potential.
In comparison to peers, K P R Mill Ltd is categorized as very expensive with a PE ratio of 41.5, while Trident is rated fair with a PE of 33.16. This stark contrast emphasizes Visagar Polytex's undervaluation in the market. Additionally, despite recent underperformance against the Sensex, with a YTD return of -25.96% compared to the Sensex's 5.58%, the long-term outlook appears more promising given the recent grade change and attractive valuation metrics.