Is Haryana Leather overvalued or undervalued?

As of 7 November 2025, Haryana Leather's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently overvalued based on its financial metrics. Key ratios include a PE Ratio of 17.64, an EV to EBITDA of 9.75, and a Price to Book Value of 0.88, which suggest that the stock is priced high relative to its earnings and book value.
In comparison to its peers, Haryana Leather's PE Ratio is notably lower than Solar Industries at 97.45 and Gujarat Fluoroch at 63.86, both of which are also classified as very expensive. However, it is important to note that Godrej Industries, rated as attractive, has a PE Ratio of 35.95, highlighting that Haryana Leather's valuation is not justified when compared to more reasonably priced competitors. The stock has underperformed against the Sensex over the past year, with a return of -18.83% compared to the Sensex's 4.62%, reinforcing the view that it is overvalued.