Is Aik Pipes & Poly overvalued or undervalued?

As of 22 September 2025, the valuation grade for Aik Pipes & Poly has moved from very expensive to expensive, indicating a slight shift in perception but still reflecting high valuation concerns. The company is currently considered overvalued. Key ratios include a PE ratio of 31.22, an EV to EBIT of 22.09, and an EV to EBITDA of 18.58, which are significantly higher compared to peers like Finolex Industries with a PE of 33.78 and EV to EBITDA of 31.74, and Kingfa Science with a PE of 35.8 and EV to EBITDA of 24.46.
The company's performance has been notably poor, with a year-to-date return of -43.5% compared to a 5.15% gain in the Sensex, reinforcing the overvaluation narrative. Despite the high ratios, the low ROCE of 7.26% and ROE of 5.61% suggest inefficiencies in generating returns, further supporting the conclusion that Aik Pipes & Poly is overvalued in its current market position.