Is Heranba Inds overvalued or undervalued?

As of 11 August 2025, the valuation grade for Heranba Industries has moved from very attractive to attractive, indicating a shift in market perception. The company is currently considered overvalued, primarily due to its exceptionally high PE ratio of 433.61, which starkly contrasts with peers such as UPL and BASF India, which have PE ratios of 34.55 and 48.67, respectively. Additionally, the EV to EBITDA ratio stands at 16.56, while the PEG ratio is at 0.00, suggesting limited growth expectations despite the high valuation.
In comparison to its peers, Heranba's financial metrics highlight its overvaluation. For instance, while UPL and BASF India maintain more reasonable EV to EBITDA ratios of 8.50 and 29.11, respectively, Heranba's ratios indicate a significant premium that may not be justified by its current performance, reflected in a low ROCE of 3.64% and ROE of 0.36%. Furthermore, the company's stock has underperformed against the Sensex, with a year-to-date decline of 19.22% compared to a 3.15% increase in the index, reinforcing the notion that Heranba is overvalued in the current market environment.