Is I G Petrochems overvalued or undervalued?

As of 18 July 2025, I G Petrochems has moved from a fair to an expensive valuation grade. The company is currently deemed overvalued based on its financial metrics. Key ratios include a PE ratio of 14.37, an EV to EBITDA of 7.14, and a PEG ratio of 0.08, which suggests that the stock is not priced attractively relative to its earnings growth potential.
In comparison with its peers, I G Petrochems' PE ratio is significantly lower than that of Solar Industries, which stands at 111.48, and Gujarat Fluoroch at 70.17, both categorized as very expensive. Meanwhile, Godrej Industries is considered attractive with a PE of 39.68. While I G Petrochems has shown a strong return of 215.36% over the past five years, its recent performance has lagged behind the Sensex, particularly in the year-to-date and one-year periods, indicating potential concerns regarding its current valuation.