Is Apollo Pipes overvalued or undervalued?

As of 29 August 2025, the valuation grade for Apollo Pipes has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently deemed overvalued, with a PE ratio of 56.98, an EV to EBITDA ratio of 18.97, and a Price to Book Value of 2.35. These ratios suggest that Apollo Pipes is trading at a premium compared to its earnings and book value.
In comparison to its peers, Apollo Pipes' PE ratio is lower than that of Supreme Industries at 63.81 and Astral at 75.33, both of which are also categorized as very expensive. However, it is notably higher than Finolex Industries, which is considered expensive with a PE ratio of 33.07. The company's recent stock performance has been lackluster, with a year-to-date return of -12.93%, contrasting with a positive return of 2.14% for the Sensex, further reinforcing the notion of overvaluation.