Is Axel Polymers overvalued or undervalued?

As of 24 October 2025, Axel Polymers has moved from a fair to an attractive valuation grade. The company is currently considered undervalued, with a PE ratio of 60.23, an EV to EBITDA ratio of 16.06, and a Price to Book Value of 2.78. In comparison to its peers, Axel Polymers has a higher PE ratio than Finolex Industries, which is fairly valued at 29.54, but lower than Astral, which is very expensive at 79.23.
Despite the attractive valuation, Axel Polymers has underperformed relative to the Sensex, with a year-to-date return of -8.76% compared to the Sensex's 7.77%. This performance, along with a ROCE of 7.14% and ROE of 4.62%, suggests that while the stock may be undervalued, there are underlying issues that could be affecting its market performance.