Is Hind.Composites overvalued or undervalued?

As of 29 August 2025, the valuation grade for Hind.Composites has moved from attractive to very attractive, indicating a positive shift in its valuation outlook. The company is currently considered undervalued. Key ratios supporting this assessment include a PE Ratio of 16.13, an EV to EBITDA of 10.59, and a PEG Ratio of 0.61, all of which suggest that the stock is trading at a discount relative to its earnings growth potential.
In comparison to its peers, Hind.Composites stands out with a significantly lower PE Ratio than Bosch, which is at 53.09, and Samvardhana Motherson, which has a PE of 28.68. Additionally, the EV to EBITDA ratio of 10.59 is more attractive than that of Samvardhana Motherson at 10.63, reinforcing the undervaluation narrative. Despite recent underperformance relative to the Sensex, with a YTD return of -16.72% compared to the Sensex's 2.14%, the long-term prospects remain promising, as evidenced by a 5-year return of 120.94%.