Is Hindprakash Indu overvalued or undervalued?

As of 30 May 2025, Hindprakash Industries Ltd. has moved from a very attractive to an attractive valuation grade. The company is currently considered overvalued based on its high valuation ratios. The PE ratio stands at 95.70, significantly above the industry average, while the EV to EBITDA ratio is at 43.26, indicating a premium valuation compared to peers. Additionally, the PEG ratio is at 0.00, which suggests that the stock may not be growing at a rate that justifies its current price.
In comparison, one of its peers, which also has an attractive valuation, shows a PE ratio of 43.26 and an EV to EBITDA of 48.75. This highlights that Hindprakash's valuation is substantially higher than its competitors. Moreover, the company's return over the past year has been -10.65%, underperforming the Sensex, which returned 7.86%. This underperformance, alongside the high valuation ratios, reinforces the conclusion that Hindprakash Industries Ltd. is overvalued at its current price of 130.32.