Is HP Telecom overvalued or undervalued?

As of 22 August 2025, HP Telecom's valuation grade has moved from very expensive to expensive, indicating a shift in perception regarding its market value. The company is currently assessed as overvalued. Key ratios include a PE ratio of 16.86, an EV to EBIT of 11.15, and a Price to Book Value of 2.81, which suggest that the stock is priced higher relative to its earnings and assets compared to its peers.
In comparison with its peers, HP Telecom's PE ratio is significantly lower than that of Lloyds Enterprises, which stands at 39, indicating a premium valuation in that case. Conversely, PTC India, which is considered very attractive, has a PE ratio of 8.95, highlighting a stark contrast in valuation. Additionally, HP Telecom's recent stock performance has lagged behind the Sensex, with a 1-week return of -2.76% compared to the Sensex's 0.97%, further reinforcing the notion that the stock may not be a favorable investment at its current price.