Is Hindprakash Indu overvalued or undervalued?

As of 29 October 2025, Hindprakash Indu's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 101.70, an EV to EBITDA ratio of 45.63, and a ROCE of 4.82%. In comparison to its peers, Sudarshan Chem is considered expensive with a PE of 107.06, while Meghmani Organics is also rated fair with a PE of 110.61.
Despite the recent changes in valuation, Hindprakash Indu's stock has underperformed relative to the Sensex, with a year-to-date return of -0.29% compared to the Sensex's 8.78%. This underperformance, along with the high valuation ratios, suggests that while the company is currently fairly valued, it may face challenges in justifying its high multiples in the competitive landscape of the dyes and pigments industry.