Is Apollo Pipes overvalued or undervalued?

As of 2 September 2025, Apollo Pipes has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued based on its financial ratios. The PE ratio stands at 57.05, significantly higher than its peers, with Supreme Industries at 65.62 and Finolex Industries at 33.89. Additionally, the EV to EBITDA ratio is 18.99, which also reflects a premium compared to the industry average.
In comparison to its peers, Apollo Pipes shows weaker performance metrics, with a ROCE of 6.85% and an ROE of 4.12%, indicating less efficient capital utilization than competitors like Finolex Industries. Despite a recent stock return of 1.49% over the past week, which outperformed the Sensex, the year-to-date performance of -12.80% suggests underlying challenges that reinforce the overvaluation assessment. Overall, Apollo Pipes appears to be overvalued in the current market context.