Is IFB Industries overvalued or undervalued?

As of 31 October 2025, IFB Industries has moved from an attractive to a fair valuation grade, indicating a shift in market perception. The company is currently assessed as overvalued, particularly in light of its high PE ratio of 59.65 and a PEG ratio of 2.06, which suggests that the stock may be priced too high relative to its earnings growth potential. Additionally, the EV to EBITDA ratio stands at 23.97, reinforcing concerns about its valuation compared to earnings.
In comparison to peers, IFB Industries' PE ratio is notably higher than Whirlpool India's 49.42, which is rated as attractive, and Symphony's fair rating with a PE of 55.27. This disparity highlights that while IFB Industries has strong returns on capital, with a ROCE of 21.86% and ROE of 14.12%, its current pricing may not be justified when viewed against its competitors. Recent stock performance shows a 1-year return of 21.10%, significantly outperforming the Sensex's 5.73%, but this does not mitigate the overvaluation concerns based on the current financial ratios.