Is Indian Renewable overvalued or undervalued?

As of 10 July 2025, the valuation grade for Indian Renewable has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios include a PE ratio of 28.06, an EV to EBIT of 16.22, and a ROE of 18.19%.
In comparison to its peers, Indian Renewable's PE ratio is substantially higher than Life Insurance, which stands at 12.13, and IRFC at 27.56, both of which are classified as fair. Additionally, while Bajaj Finance is also categorized as very expensive with a PE ratio of 35.38, Indian Renewable's valuation appears excessive given its performance metrics. Notably, the company's stock has underperformed relative to the Sensex over the past year, with a return of -31.27% compared to the Sensex's 4.09%, further reinforcing the view that it is overvalued.