Is HP Adhesives overvalued or undervalued?

As of 3 November 2025, the valuation grade for HP Adhesives has moved from very attractive to attractive. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 28.73, an EV to EBITDA of 18.41, and a Price to Book Value of 2.62, which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, HP Adhesives' PE ratio is significantly lower than that of Solar Industries at 101.49 and Gujarat Fluoroch at 65.46, both categorized as very expensive. However, it is also higher than Godrej Industries, which has a PE ratio of 37.65 and is rated as attractive. Notably, HP Adhesives has underperformed the Sensex over the past year, with a return of -38.84% compared to the Sensex's 5.34%, reinforcing the notion that the stock may be overvalued in the current market context.