Is HP Telecom overvalued or undervalued?

As of 15 September 2025, HP Telecom's valuation grade has moved from very expensive to expensive, indicating a slight improvement in perceived value but still suggesting overvaluation. The company is currently assessed as expensive, with a PE ratio of 18.18, an EV to EBIT of 11.78, and an EV to EBITDA of 11.74. These ratios reflect a premium compared to peers like PTC India, which is very attractive with a PE of 8.37 and an EV to EBITDA of 4.46, and Optiemus Infra, which is fairly valued with a PE of 84.47 and an EV to EBITDA of 49.73.
Given the current valuation metrics and the relative comparison with peers, HP Telecom appears to be overvalued. The company's return performance over the past year has lagged behind the Sensex, which may further reinforce the perception of overvaluation as investors seek better opportunities.