Is Innovators overvalued or undervalued?

As of 9 September 2025, the valuation grade for Innovators has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued based on its financial ratios. Key metrics include a PE ratio of 22.84, an EV to EBITDA of 12.05, and a PEG ratio of 5.92, which suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison with peers, Innovators' PE ratio is notably lower than that of Tube Investments, which has a PE of 94.1, and higher than Ircon International, which stands at 24.44. This places Innovators in a challenging position within its industry, as it is priced higher than many of its competitors despite not demonstrating superior growth metrics. Furthermore, while the stock has shown strong returns over the long term, its recent performance has lagged behind the Sensex, particularly with a year-to-date decline of 15.51% compared to a 3.79% increase in the index.