Is Hindustan Hardy overvalued or undervalued?

As of 13 November 2025, Hindustan Hardy's valuation grade has moved from expensive to very expensive, indicating a significant shift in its market perception. The company appears to be overvalued based on its current metrics, with a PE ratio of 16.90, a Price to Book Value of 5.03, and an EV to EBITDA of 12.27. In comparison to peers, Samvardh. Mothe. has a much higher PE ratio of 33.73, while Bosch shows a PE of 48.43, highlighting that Hindustan Hardy's valuation is not justified relative to its competitors.
The company's financial performance, including a ROCE of 25.76% and a ROE of 29.74%, suggests strong operational efficiency; however, these figures do not compensate for its high valuation. Additionally, the stock has underperformed compared to the Sensex, with a year-to-date return of -0.72% against the Sensex's 8.11%. Overall, Hindustan Hardy is currently overvalued in the market.