Is Aik Pipes & Poly overvalued or undervalued?

As of 30 October 2025, the valuation grade for Aik Pipes & Poly has moved from expensive to very expensive. The company is currently overvalued, with a PE ratio of 25.33, an EV to EBIT of 18.44, and an EV to EBITDA of 15.50. These ratios indicate a significant premium compared to peers, such as Finolex Industries, which has a PE ratio of 29.7 and an EV to EBITDA of 27.23, and Time Technoplast, with a PE ratio of 23.51 and an EV to EBITDA of 12.47.
The company's financial performance also raises concerns, as it reports a ROCE of 7.26% and a ROE of 5.61%, which are relatively low compared to industry standards. Furthermore, Aik Pipes & Poly has underperformed the Sensex significantly over the past year, with a stock return of -59.26% compared to the Sensex's 5.58%. This combination of high valuation ratios and poor performance suggests that the stock is not a favorable investment at its current price of 50.96.