Is HCKK Ventures overvalued or undervalued?

As of 1 July 2025, HCKK Ventures' valuation grade has moved from very expensive to risky, indicating a significant shift in its market perception. The company appears to be overvalued, given its high PE ratio of 49.70, a price-to-book value of 11.86, and an EV to EBIT ratio of 46.48. These ratios suggest that investors are paying a premium for the stock compared to its earnings and book value.
In comparison to its peers, HCKK Ventures' PE ratio of 39.326 is notably higher than Life Insurance's fair valuation PE of 12.71 and I R F C's fair valuation PE of 28.43, highlighting its overvaluation in the diversified industry. Additionally, the company's ROE of 4.30% and ROCE of 12.00% further emphasize the concerns regarding its profitability relative to its high market valuation. While HCKK Ventures has outperformed the Sensex over the past year with a return of 53.97% compared to 5.31%, the underlying valuation metrics suggest that the stock may not be a sustainable investment at its current price of 133.95.