Is HFCL overvalued or undervalued?

Oct 26 2025 08:04 AM IST
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As of October 24, 2025, HFCL is considered overvalued with a PE ratio of 402.80 and an EV to EBITDA of 56.99, significantly higher than its peers, and has underperformed the Sensex with a year-to-date return of -31.18%.
As of 24 October 2025, HFCL's valuation grade has moved from fair to expensive, indicating a shift in perception regarding its market worth. The company is currently overvalued, with a PE ratio of 402.80, an EV to EBITDA of 56.99, and a Price to Book Value of 0.27. These ratios suggest that the stock is trading at a premium compared to its earnings and cash flow generation capabilities.

In comparison to its peers, HFCL's valuation appears significantly higher than Indus Towers, which has a PE ratio of 10 and an EV to EBITDA of 5.59, and Affle 3i, which, despite being classified as very expensive, has a PE of 66.16. Furthermore, HFCL's recent stock performance has lagged behind the Sensex, with a year-to-date return of -31.18% compared to the Sensex's 7.77%, reinforcing the notion that the stock may not justify its current valuation.
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