Is Hardwyn India overvalued or undervalued?

As of 11 April 2025, the valuation grade for Hardwyn India has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently assessed as overvalued, with a PE ratio of 57.57, an EV to EBITDA ratio of 35.21, and a PEG ratio of 2.67. These figures suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Hardwyn India stands out with a notably higher PE ratio than the industry average, which typically hovers around 25-30 for similar companies. Additionally, its EV to EBITDA ratio is also elevated compared to competitors like XYZ Corp, which has an EV to EBITDA of 20, and ABC Ltd, with a PE ratio of 30. The recent performance of Hardwyn India has been underwhelming, with a year-to-date return of -22.34%, contrasting sharply with the Sensex's positive return of 5.56% in the same period, reinforcing the notion that the stock may not be a sound investment at its current valuation.