Is Hindustan Hardy overvalued or undervalued?

As of 18 November 2025, Hindustan Hardy's valuation grade has moved from very expensive to fair, indicating a significant adjustment in its market perception. The company is currently fairly valued, with a PE ratio of 16.20, an EV to EBITDA of 11.80, and a PEG ratio of 0.23, suggesting that it is priced attractively relative to its growth prospects.
In comparison to its peers, Hindustan Hardy's PE ratio is considerably lower than that of Samvardhan Motherson, which stands at 33.98, and Bosch at 47.99, both of which are classified as attractive or fair, respectively. Additionally, while Hindustan Hardy's ROCE is a strong 28.98%, it is worth noting that the company has underperformed the Sensex in the short term, with a year-to-date return of -4.84% compared to the Sensex's 8.36%. This context reinforces the notion that Hindustan Hardy is currently fairly valued within its industry.