Is Garware Hi Tech overvalued or undervalued?

As of 10 July 2025, the valuation grade for Garware Hi Tech has moved from very expensive to expensive, indicating a slight improvement in perceived value. The company is currently considered overvalued. Key ratios include a PE ratio of 25.49, an EV to EBITDA of 17.70, and a PEG ratio of 0.41, which suggests that while the company has strong growth potential, its current price does not reflect that potential adequately compared to its earnings.
In comparison to its peers, Garware Hi Tech's PE ratio is significantly higher than AGI Greenpac, which has a PE of 16.35 and is rated very attractive, and Uflex, with a PE of 13.27 and rated attractive. This disparity highlights that Garware Hi Tech may not justify its premium valuation in the current market. Additionally, the company has underperformed relative to the Sensex over the past month, with a stock return of -17.79% compared to a 0.97% return for the index, further reinforcing the notion that it is overvalued at this time.