Is The Hi-Tech Gear overvalued or undervalued?

As of 20 June 2025, The Hi-Tech Gear's valuation grade has moved from fair to attractive, indicating a more favorable outlook for the company. The stock is currently considered undervalued, with a PE ratio of 33.66, an EV to EBITDA of 11.22, and a Price to Book Value of 2.81. These ratios suggest that the company is positioned well compared to its peers, particularly when considering Samvardh. Mothe. with a PE of 27.81 and EV to EBITDA of 11.05, which highlights The Hi-Tech Gear's relative strength in valuation metrics.
In comparison to other competitors, The Hi-Tech Gear appears to be more attractively priced than Bosch and Uno Minda, which are categorized as expensive with PE ratios of 47.3 and 65.33, respectively. Despite recent underperformance against the Sensex over the past year, where the stock has declined by 25.59% compared to a 6.36% increase in the Sensex, the long-term outlook remains positive with a significant 360.51% return over the past three years. This suggests that while short-term fluctuations may be concerning, the company's fundamentals support a more optimistic valuation perspective.