Is Visagar Polytex overvalued or undervalued?

As of 23 October 2025, the valuation grade for Visagar Polytex has moved from very attractive to risky, indicating a significant deterioration in its financial standing. The company is currently assessed as overvalued, given its troubling financial ratios, including a PE ratio of -1.50, an EV to EBITDA of -29.77, and a ROCE of -241.11%. These metrics suggest that the company is not generating positive returns on its capital and is facing severe profitability issues.
In comparison to its peers, Visagar Polytex's valuation appears unfavorable. For instance, K P R Mill Ltd is categorized as very expensive with a PE ratio of 44.73, while Vardhman Textile is fairly valued with a PE of 15.03. The stark contrast in these ratios highlights the challenges Visagar Polytex faces in the garments and apparel industry. Furthermore, the company's stock has underperformed significantly against the Sensex over various periods, particularly with a year-to-date decline of 23.08% compared to the Sensex's gain of 8.21%. This underperformance reinforces the notion that Visagar Polytex is currently overvalued.