Is Holmarc Opto overvalued or undervalued?

As of 28 October 2025, the valuation grade for Holmarc Opto has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued based on key financial ratios, including a PE ratio of 30.54, an EV to EBITDA of 18.21, and a PEG ratio of 3.38. These figures suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Holmarc Opto's valuation appears high, especially when contrasted with Ircon International, which has a PE ratio of 23.73 and an EV to EBITDA of 18.84, indicating a more attractive valuation. Other peers like Rail Vikas and Tube Investments are also significantly more expensive, further emphasizing Holmarc Opto's position in the market. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -37.55% compared to the Sensex's 9.69%, reinforcing the notion that Holmarc Opto may be overvalued at its current price of 113.65.