Is HPL Electric overvalued or undervalued?

As of 30 June 2025, HPL Electric's valuation grade has moved from very attractive to attractive. The company is currently considered overvalued based on its high PE ratio of 39.08, a Price to Book Value of 4.00, and an EV to EBITDA of 16.66. In comparison to peers, HPL Electric's PE ratio is significantly lower than ABB's 68.18 and BHEL's 173.65, both categorized as very expensive, indicating that while HPL Electric is relatively high in valuation, it is not as extreme as some competitors.
Despite its attractive valuation grade, HPL Electric's ratios suggest it may be overvalued in the current market context. The company has shown a strong return over the past year at 29.79%, outperforming the Sensex's 5.79%, which may have contributed to its elevated valuation. Overall, HPL Electric appears to be overvalued given its high multiples compared to industry standards and peers.