Is Hind Rectifiers overvalued or undervalued?

As of 17 April 2025, the valuation grade for Hind Rectifiers has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company is still considered overvalued. Key ratios include a PE ratio of 59.51, an EV to EBITDA of 33.80, and a PEG ratio of 0.66, which suggests that while growth expectations are high, the current price may not be justified by earnings growth.
In comparison to its peers, Hind Rectifiers' PE ratio is significantly lower than that of Kaynes Tech at 125.17 and Honeywell Auto at 65.93, but it remains higher than Genus Power, which has a PE of 38.52. The high valuation metrics, coupled with a relatively low dividend yield of 0.09%, further support the conclusion that Hind Rectifiers is overvalued. Notably, the stock has outperformed the Sensex over the past year, returning 96.46% compared to the Sensex's 7.61%, which may have contributed to the inflated valuation.