Is Innovative Ideal overvalued or undervalued?

As of 27 May 2025, the valuation grade for Innovative Ideals & Services (India) Ltd. has moved from does not qualify to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 31.86, an EV to EBITDA ratio of 51.50, and a Price to Book Value of 13.69.
In comparison to its peers, Innovative Ideals stands out with a PEG ratio of 0.23, suggesting that while its growth prospects may appear attractive, the current valuations do not justify the price. Notably, the company’s ROE is exceptionally high at 42.98%, but this does not offset the concerns raised by its elevated valuation metrics. Additionally, the stock has underperformed relative to the Sensex over the past year, which may further reinforce the notion of it being overvalued in the current market environment.