Is Innovative Ideal overvalued or undervalued?

As of 11 August 2025, the valuation grade for Innovative Ideal has moved from risky to very expensive. The company is currently overvalued, with a PE ratio of 22.97, an EV to EBITDA ratio of 42.60, and a ROE of 42.98%. Compared to its peers, Lloyds Enterprises has a significantly higher PE ratio of 174.59, while PTC India, which is rated very attractive, has a much lower PE of 8.43, indicating that Innovative Ideal's valuation is not justified relative to its industry.
In the past year, Innovative Ideal has seen a stock return of -12.3%, contrasting with a modest 1.13% return from the Sensex, further reinforcing the notion that the stock is overvalued. The company's high Price to Book Value of 9.87 and low ROCE of 3.87% also suggest inefficiencies in generating returns relative to its valuation, making it less appealing in the current market environment.