Is Indian Renewable overvalued or undervalued?

As of 15 October 2025, the valuation grade for Indian Renewable has moved from expensive to very attractive, indicating a significant shift in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 25.26, an EV to EBITDA of 15.36, and a PEG ratio of 0.85, which suggests that the stock is trading at a discount relative to its growth potential.
In comparison to its peers, Indian Renewable's valuation appears favorable. For instance, Bajaj Finance is categorized as very expensive with a PE ratio of 37.84, while Life Insurance is very attractive with a PE ratio of 11.69. This positions Indian Renewable competitively within the finance sector, particularly given its low price to book value of 0.34 and an EV to capital employed ratio of 0.55. Despite the company's recent underperformance relative to the Sensex, with a year-to-date return of -28% compared to the Sensex's 5.72%, the current valuation suggests that it may present a compelling investment opportunity moving forward.