Is HP Telecom overvalued or undervalued?

As of 10 September 2025, the valuation grade for HP Telecom has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a PE Ratio of 18.00, an EV to EBIT of 11.69, and an EV to EBITDA of 11.65, which are all elevated compared to industry norms.
In comparison to peers, HP Telecom's PE Ratio of 18.00 is notably higher than PTC India, which has a PE of 8.35 and is rated very attractive, and Optiemus Infra, rated fair with a PE of 83. Additionally, HP Telecom's PEG Ratio is 0.00, suggesting a lack of growth expectations compared to its price. The company's recent stock performance has underperformed against the Sensex, with a 1-week return of -5% compared to the Sensex's 1.04% gain, reinforcing the notion of overvaluation.