Is Indo Farm Equip. overvalued or undervalued?

Oct 27 2025 08:07 AM IST
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As of October 24, 2025, Indo Farm Equip. is considered overvalued with a high PE ratio of 51.44 and lower returns on capital and equity compared to peers, leading to a valuation grade shift from very expensive to expensive.
As of 24 October 2025, the valuation grade for Indo Farm Equip. has moved from very expensive to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued based on its high PE ratio of 51.44, an EV to EBITDA of 25.20, and a Price to Book Value of 2.26. In comparison, peers like Escorts Kubota and VST Till. Tract. have lower PE ratios of 28.35 and 43.42, respectively, which further supports the conclusion that Indo Farm Equip. is trading at a premium relative to its industry.

Additionally, the company's return on capital employed (ROCE) stands at a modest 6.74%, and the return on equity (ROE) is only 4.39%, which are both below industry expectations. Despite a recent one-week stock return of 2.04% compared to a 0.31% return for the Sensex, the overall valuation metrics suggest that Indo Farm Equip. is not justified in its current pricing, reinforcing the assessment that it is overvalued.
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