Is Inox India overvalued or undervalued?

Jun 09 2025 04:47 PM IST
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As of February 14, 2024, Inox India is considered very expensive and overvalued with a PE ratio of 50.17, a Price to Book Value of 12.66, and an EV to EBITDA of 38.07, despite a year-to-date return of 11.13% that outperforms the Sensex's 5.54%, while it has underperformed over the last year with a decline of 2.35% compared to the Sensex's gain of 7.53%.
As of 14 February 2024, the valuation grade for Inox India has moved from risky to very expensive. The company is currently overvalued, with a PE ratio of 50.17, a Price to Book Value of 12.66, and an EV to EBITDA of 38.07. These ratios indicate a significant premium compared to its peers, such as Rail Vikas Nigam Ltd., which has a PE of 69.76, and AIA Engineering Ltd., with a PE of 31.18.

Inox India's financial metrics suggest that it is trading at a high valuation relative to its earnings and book value, reinforcing the conclusion of being overvalued. The company's recent stock performance has been mixed, with a year-to-date return of 11.13%, which outperforms the Sensex return of 5.54% in the same period, but it has underperformed over the last year with a decline of 2.35% compared to the Sensex's gain of 7.53%.
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