Is Incap overvalued or undervalued?

As of 7 November 2025, the valuation grade for Incap has moved from very attractive to attractive, indicating a shift in market perception. The company is currently considered overvalued based on its high PE ratio of 57.68, an EV to EBIT of 73.11, and a PEG ratio of 5.13, which are significantly above industry norms.
In comparison to its peers, Incap's PE ratio is notably higher than that of Cyient DLM, which stands at 43.25, and Genus Power, which has a PE of 23.43. This suggests that Incap may be priced at a premium relative to its competitors, despite its lower return metrics, such as a ROE of 0.53% and ROCE of 0.61%. Additionally, while Incap's stock has underperformed against the Sensex over the past year, it has shown strong long-term growth, with a 3-year return of 143.31%.