Is HEC Infra Proj. overvalued or undervalued?

As of 20 June 2025, HEC Infra Proj. has moved from a fair to an expensive valuation grade. The company appears overvalued based on its current metrics, with a PE ratio of 18.86, an EV to EBITDA of 15.66, and a PEG ratio of 0.25. In comparison to its peers, HEC Infra Proj. has a significantly lower valuation than PTC India, which boasts a PE ratio of 8.82 and an EV to EBITDA of 4.04, indicating a more attractive investment opportunity.
The company's return metrics also reflect its overvaluation, as it has underperformed against the Sensex in the short term, with a 1-week stock return of -1.60% compared to the Sensex's 1.59% gain. Despite a strong 1-year return of 41.24%, the overall valuation suggests that investors may be paying a premium for HEC Infra Proj. relative to its earnings potential and growth prospects.