Is Hind Rectifiers overvalued or undervalued?

As of 7 November 2025, Hind Rectifiers has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued based on its high PE ratio of 62.63, an EV to EBIT of 58.52, and a PEG ratio of 1.14. These metrics suggest that the stock is trading at a significant premium compared to its earnings and growth potential.
In comparison to its peers, Hind Rectifiers' valuation appears stretched, especially when contrasted with Genus Power, which has a PE ratio of 23.43 and an EV to EBITDA of 15.49, indicating a more attractive valuation. Other peers like Kaynes Tech and Honeywell Auto are also categorized as very expensive, but their respective ratios are significantly higher, further highlighting Hind Rectifiers' overvaluation. Despite a strong performance with a year-to-date return of 25.12% compared to the Sensex's 6.50%, the current valuation metrics suggest caution for potential investors.