Is Heranba Inds overvalued or undervalued?

As of 30 June 2025, the valuation grade for Heranba Industries has moved from very attractive to attractive. The company is currently considered overvalued based on its high PE ratio of 447.21, which significantly exceeds the industry average. Additionally, the EV to EBITDA ratio stands at 16.98, while the EV to Sales ratio is 1.18, both indicating a premium valuation compared to peers.
In comparison to its industry peers, Heranba's valuation metrics are notably higher; for instance, UPL has a PE ratio of 39.81 and an EV to EBITDA of 8.53, while BASF India shows a PE of 47.11 and an EV to EBITDA of 29.33. Despite recent stock performance showing a 19.83% return over the past week compared to a mere 2.09% for the Sensex, the long-term outlook remains concerning with a year-to-date decline of 16.79% against a 7% gain in the Sensex. This suggests that while short-term gains are present, the overall valuation does not justify the current price levels.