Is HRH Next overvalued or undervalued?

As of 16 October 2025, HRH Next's valuation grade has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios include a PE Ratio of 15.45, an EV to EBITDA of 6.65, and a ROE of 8.59%.
In comparison to its peers, TCS has a PE Ratio of 21.37 and EV to EBITDA of 8.26, while Infosys shows a PE Ratio of 22.44 and EV to EBITDA of 14.73, both suggesting that HRH Next is trading at a discount relative to these industry leaders despite its expensive rating. Additionally, HRH Next's recent stock performance has been significantly underwhelming, with a year-to-date return of -64.06%, contrasting sharply with the Sensex's gain of 8.21% during the same period, further reinforcing the notion of overvaluation.