Is Garware Hi Tech overvalued or undervalued?

As of 28 July 2025, the valuation grade for Garware Hi Tech has moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 24.80, an EV to EBITDA of 17.18, and a PEG ratio of 0.39.
In comparison to its peers, AGI Greenpac holds a more attractive valuation with a PE of 17.72, while Uflex is even more appealing at a PE of 12.82. Despite Garware Hi Tech's strong ROCE of 23.02% and ROE of 13.97%, its elevated valuation ratios suggest that the stock may not offer sufficient upside potential at its current price of 3,535.75. Notably, while the stock has performed well over the long term, its recent performance has lagged behind the Sensex, with a year-to-date return of -30.05% compared to the Sensex's 3.52%.