Is Innocorp overvalued or undervalued?

As of 12 November 2024, Innocorp's valuation grade has moved from does not qualify to risky, indicating a significant shift in its financial standing. The company appears to be undervalued based on its current metrics, with a PE ratio of 0.98, a Price to Book Value of 1.71, and an EV to EBIT of -4.39. These figures suggest that Innocorp is trading at a discount compared to its peers.
In comparison to its industry, Innocorp's PE ratio is substantially lower than that of Supreme Industries at 57.34 and Astral at 78.35, both of which are categorized as very expensive. Additionally, Innocorp's ROE stands at an impressive 174.32%, which, despite its negative ROCE of -7.42%, indicates strong profitability relative to equity. Recent stock performance shows that while Innocorp has underperformed the Sensex over the past month, it has delivered a notable return over the last five years, outperforming the index. Overall, Innocorp's current valuation suggests it is an attractive investment opportunity amidst its risky classification.