Is HPL Electric overvalued or undervalued?

As of 13 June 2025, HPL Electric's valuation grade has moved from attractive to very attractive, indicating a strong positive shift in its perceived value. 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 that the stock is trading at a discount relative to its growth potential.
In comparison to its peers, HPL Electric stands out with a significantly lower PE ratio than ABB, which is at 67.25, and BHEL, which has a PE ratio of 165.36. This positions HPL Electric favorably within its industry, particularly given its robust ROCE of 14.23% and ROE of 10.25%. Additionally, while the company's recent stock performance has shown a decline of 4.68% over the past week, it has outperformed the Sensex with a notable 21.63% return over the past year, reinforcing the attractiveness of its current valuation.