Is Visagar Polytex overvalued or undervalued?

As of 17 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 include a PE ratio of -1.41, an EV to EBITDA of -28.30, and an EV to Capital Employed of 4.52, which highlight its challenging financial position but also suggest potential for recovery.
In comparison with its peers, K P R Mill Ltd is categorized as very expensive with a PE ratio of 42.99, while Trident is deemed fair with a PE of 32.63. This stark contrast underscores the potential upside for Visagar Polytex, given its very attractive valuation despite negative earnings metrics. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -27.88% compared to the Sensex's 7.44%, reinforcing the notion that the stock may be undervalued in the current market environment.