Is Hamps Bio overvalued or undervalued?

As of 29 May 2025, Hamps Bio's valuation grade has moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued based on its financial metrics. Key ratios include a PE Ratio of 17.81, an EV to EBIT of 18.80, and a Price to Book Value of 5.28, which suggest that the stock is priced higher than its earnings and book value would typically justify.
When compared to peers, Hamps Bio's valuation stands out as particularly high. For instance, Sun Pharmaceutical Industries Ltd. has a PE Ratio of 35.25 and an EV to EBITDA of 24.91, while Cipla Ltd. offers a more attractive PE of 22.99 and an EV to EBITDA of 15.93. These comparisons highlight that Hamps Bio is not only very expensive relative to its own metrics but also when placed alongside its industry peers. Additionally, the company's stock has underperformed significantly, with a year-to-date return of -50.65% compared to a 5.55% return for the Sensex, reinforcing the notion that it may be overvalued in the current market environment.