Is Hindprakash Indu overvalued or undervalued?

As of 11 August 2025, the valuation grade for Hindprakash Indu has moved from very attractive to attractive. The company is currently considered overvalued, primarily due to its high PE ratio of 93.10, which significantly exceeds the industry average. Other notable ratios include an EV to EBITDA of 42.24 and a Price to Book Value of 2.86, indicating that the stock is priced at a premium compared to its book value.
In comparison to peers, Sudarshan Chem is categorized as expensive with a PE ratio of 166.42, while Meghmani Organics is considered attractive with a PE of 116.83. The disparity in valuation metrics suggests that Hindprakash Indu may not justify its current price given its lower ROE of 3.07% and ROCE of 4.82%. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -9.09% compared to the Sensex's positive return of 3.15%.