Is Indo Rama Synth. overvalued or undervalued?

As of 14 July 2025, the valuation grade for Indo Rama Synth. has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, especially when considering its high PE ratio of 931.05, which is significantly higher than peers like K P R Mill Ltd at 49.82 and Trident at 42.96. Additionally, Indo Rama's EV to EBITDA stands at 13.51, while its PEG ratio is 9.25, both of which suggest a premium valuation compared to its industry counterparts.
In comparison to its peers, Indo Rama Synth. shows a stark contrast in valuation metrics, with companies like Vardhman Textile and Welspun Living being classified as fair and attractive, respectively, yet maintaining much lower PE ratios of 16.06 and 21.03. Notably, Indo Rama's recent stock performance has outpaced the Sensex, with a year-to-date return of 20.87% compared to the Sensex's 5.27%, reinforcing the notion that the stock may be undervalued in the current market context.