Is Apollo Pipes overvalued or undervalued?

As of 3 September 2025, Apollo Pipes has moved from an expensive to a very expensive valuation grade. The company is currently overvalued, with a PE ratio of 57.66, a Price to Book Value of 2.37, and an EV to EBITDA ratio of 19.20. In comparison to its peers, Supreme Industries has a PE ratio of 65.85 and Astral boasts a PE ratio of 78.91, both categorized as very expensive, indicating that Apollo Pipes is still priced lower than some of its direct competitors despite its high valuation.
The company's ROCE stands at 6.85% and ROE at 4.12%, which are relatively low compared to industry standards, suggesting that the high valuation may not be justified by its financial performance. Additionally, Apollo Pipes has underperformed the Sensex over the last year, with a stock return of -37.45% compared to the Sensex's -2.41%, further reinforcing the notion that the stock is overvalued in the current market context.