Is HPL Electric overvalued or undervalued?

As of 13 June 2025, the valuation grade for HPL Electric has moved from attractive to very attractive, indicating a positive shift in its market perception. The company is currently considered undervalued, supported by a PE ratio of 37.25, an EV to EBITDA ratio of 15.98, and a PEG ratio of 0.32, which suggests strong growth potential relative to its price.
In comparison to its peers, HPL Electric's valuation metrics stand out; for instance, ABB has a PE ratio of 67.25 and an EV to EBITDA of 52.32, while BHEL shows a staggering PE of 165.36. This stark contrast highlights HPL Electric's relative affordability in the market. Additionally, the company's recent stock performance has outpaced the Sensex over the past year, with a return of 21.63% compared to the Sensex's 5.61%, reinforcing the notion that HPL Electric is a compelling investment opportunity.