Is HPCL overvalued or undervalued?

As of 7 November 2025, HPCL's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued. Key ratios include a PE ratio of 7.29, an EV to EBITDA of 6.44, and a Price to Book Value of 1.99, which suggest that while the company is generating returns, it is trading at a premium compared to its intrinsic value.
In comparison to its peers, HPCL's PE ratio is significantly lower than that of Reliance Industries, which has a PE of 24.07, and also lower than IOC's PE of 9.81. Notably, BPCL, considered very attractive, has a PE of 7.4, indicating that HPCL may not be competitively priced within its sector. Additionally, HPCL has outperformed the Sensex with a year-to-date return of 16.75% compared to the Sensex's 6.50%, which may reinforce investor interest despite its current overvaluation status.