Is Garware Hi Tech overvalued or undervalued?

As of 1 September 2025, the valuation grade for Garware Hi Tech has moved from fair to expensive, indicating a shift in perception regarding its market value. The company appears to be overvalued at its current price of 2,774.00, especially when compared to its peers. Key ratios include a PE ratio of 19.85, an EV to EBITDA of 13.51, and a PEG ratio of 0.63, which suggest that the stock is trading at a premium relative to its earnings growth potential.
In comparison to peers, AGI Greenpac, which is rated very attractive, has a significantly lower PE ratio of 16.25 and an EV to EBITDA of 9.38, while Uflex, rated attractive, shows a PE of 12.52 and an EV to EBITDA of 6.43. These comparisons highlight that Garware Hi Tech's valuation is not justified when considering its financial metrics against those of its competitors. Furthermore, the company's stock has underperformed the Sensex over various periods, including a year-to-date decline of 45.12% compared to a 2.85% increase in the Sensex, reinforcing the notion that Garware Hi Tech is overvalued.