Is Havells India overvalued or undervalued?

As of 23 April 2025, Havells India has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 64.84, an EV to EBITDA of 43.36, and a PEG ratio of 4.10, all of which are significantly higher than many of its peers. For comparison, Polycab India has a PE ratio of 45.49 and an EV to EBITDA of 30.26, while KEI Industries shows a PE of 51.39 and an EV to EBITDA of 34.71, indicating that Havells India is trading at a premium relative to these competitors.
Despite a recent stock return of 1.68% over the past week, which outperformed the Sensex's return of 1.46%, the year-to-date performance of -7.99% and the one-year performance of -16.90% suggest a weakening position. Given the high valuation ratios and the relative performance against peers, it is evident that Havells India is overvalued in the current market context.