Is Indo Cotspin overvalued or undervalued?

As of 13 October 2025, the valuation grade for Indo Cotspin has moved from very expensive to expensive. Based on the current analysis, the company appears to be overvalued. Key ratios include a PE ratio of 20.35, an EV to EBIT of 18.61, and a PEG ratio of 0.43, which suggests that the stock is not offering sufficient growth relative to its price.
In comparison to its peers, Indo Cotspin's PE ratio is significantly lower than K P R Mill Ltd, which stands at 41.09, and it is also higher than Vardhman Textile's PE of 13.51. This indicates that while Indo Cotspin is positioned in a relatively expensive range, it does not justify the premium compared to its more attractive peers. Additionally, the company's stock has underperformed against the Sensex in various timeframes, particularly with a year-to-date return of -25.00% compared to the Sensex's 5.36%, reinforcing the view that Indo Cotspin is overvalued in the current market context.