Iris Clothings Adjusts Valuation Grade Amidst Competitive Industry Landscape

Iris Clothings, a microcap player in the garments and apparels industry, has recently undergone a valuation adjustment reflecting its financial metrics. The company currently exhibits a price-to-earnings (PE) ratio of 45.80, alongside a price-to-book value of 7.41. Its enterprise value to EBITDA stands at 24.12, while the enterprise value to EBIT is noted at 30.43. The firm also reports a return on capital employed (ROCE) of 16.47% and a return on equity (ROE) of 16.19%.
In comparison to its peers, Iris Clothings shows a significantly higher PE ratio than Sportking India and Indo Rama Synthetic, which have ratios of 12.74 and 18.09, respectively. Additionally, while Sumeet Industries and Century Enka also reflect high valuations, Iris Clothings maintains a competitive position within this landscape.

Despite a challenging performance over the longer term, with a three-year return of -67.85%, the company has outperformed the Sensex in the short term, achieving a year-to-date return of 6.37% compared to the index's 4.15%. This evaluation revision highlights the company's current standing amidst its industry peers.