Is Haryana Leather overvalued or undervalued?

As of 7 November 2025, the valuation grade for Haryana Leather has moved from expensive to very expensive. This indicates a significant concern regarding its current valuation. The company is assessed as overvalued, particularly given its PE ratio of 17.64, EV to EBITDA of 9.75, and ROE of 4.98%. In comparison to peers, Solar Industries has a much higher PE of 97.45, while Godrej Industries, which is rated attractive, has a PE of 35.95, highlighting the disparity in valuation metrics within the industry.
Despite Haryana Leather's recent stock performance showing a 0.50% increase over the past week, it has underperformed the Sensex over longer periods, with a year-to-date decline of 10.76% compared to the Sensex's gain of 6.50%. This trend reinforces the notion that the company is currently overvalued, especially when considering its low ROCE of 6.14% and the overall market sentiment reflected in its stock returns.