Is Haryana Leather overvalued or undervalued?

As of 15 May 2025, Haryana Leather's valuation grade has moved from attractive to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios include a PE Ratio of 17.99, an EV to EBITDA of 11.42, and a Price to Book Value of 0.86, which suggest that the stock is trading at a premium compared to its underlying fundamentals.
In comparison with its peers, Haryana Leather's PE Ratio is notably lower than Solar Industries at 123.77 and Godrej Industries at 46.63, yet it remains higher than Aarti Industries, which is fairly valued at a PE of 52.53. This disparity highlights the overvaluation of Haryana Leather relative to its industry peers. Additionally, while the company has shown strong returns over the long term, its year-to-date performance of -13.70% significantly lags behind the Sensex's 5.61% return, further reinforcing the notion of overvaluation.