Is HPCL overvalued or undervalued?

As of 6 November 2025, HPCL's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 7.23, an EV to EBITDA of 6.41, and a PEG ratio of 0.03, suggesting strong earnings potential relative to its price.
In comparison to its peers, HPCL's valuation metrics stand out; for instance, Reliance Industries has a significantly higher PE ratio of 24.36, while ONGC is deemed very expensive with a PE of 8.75. Additionally, HPCL's dividend yield of 3.28% and ROE of 13.17% further enhance its attractiveness in the oil sector. Notably, HPCL has outperformed the Sensex with a year-to-date return of 15.67% compared to the Sensex's 6.62%, reinforcing its valuation story.