Is Vishwaraj Sugar overvalued or undervalued?

As of 28 May 2025, the valuation grade for Vishwaraj Sugar Industries Ltd. has moved from very attractive to risky, indicating a significant deterioration in its investment appeal. The company is currently assessed as overvalued, primarily due to its troubling financial ratios. The PE ratio stands at -6.07, while the EV to EBITDA ratio is at an alarming 44.27, and the ROE is at -13.02%, highlighting the company's struggles to generate profit relative to its equity.
In comparison to its peers, Vishwaraj Sugar's valuation metrics appear unfavorable; for instance, its PE ratio is substantially lower than the industry average, which typically hovers around positive figures. Additionally, the EV to EBITDA ratio of 44.27 suggests that investors are paying a premium for earnings that are not being realized. The recent stock performance has been poor, with a year-to-date decline of 30.75%, contrasting sharply with the Sensex's gain of 5.57% over the same period, further reinforcing the notion of overvaluation.