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, with a PE ratio of 62.63, an EV to EBIT of 58.52, and an EV to EBITDA of 51.92. In comparison to peers, Hind Rectifiers' PE ratio is significantly higher than Genus Power, which has a PE of 23.43, indicating a stark valuation discrepancy.
Despite its recent stock performance, which has outpaced the Sensex with a year-to-date return of 25.12% compared to the Sensex's 6.50%, the elevated valuation ratios suggest that the stock is not justified at its current price of 1739.15. Other peers like Kaynes Tech and Honeywell Auto are also classified as very expensive, further emphasizing the high valuation of Hind Rectifiers within its industry.