Is HPCL overvalued or undervalued?

As of 7 November 2025, HPCL's valuation grade has moved from fair to expensive, indicating a shift in market perception. The company is currently considered overvalued based on key financial ratios. The PE ratio stands at 7.29, while the EV to EBITDA ratio is 6.44, and the Price to Book Value is 1.99. These figures suggest that HPCL's stock price does not align favorably with its earnings and book value compared to its peers.
In comparison to its industry peers, HPCL's valuation appears less attractive. For instance, Reliance Industries is rated as attractive with a PE ratio of 24.07, while IOC is also attractive with a PE of 9.81. Additionally, BPCL is rated very attractive at a PE of 7.4. Despite HPCL's recent stock performance, which has outpaced the Sensex with a year-to-date return of 16.75% versus the Sensex's 6.50%, the current valuation metrics suggest that HPCL is overvalued in the context of its industry.