Is G M Polyplast overvalued or undervalued?

As of 29 May 2025, G. M. Polyplast Ltd. has moved from a grade of risky to very expensive, indicating a significant shift in its valuation outlook. The company is currently deemed overvalued. Key ratios include a PE ratio of 15.49, an EV to EBITDA of 10.25, and a PEG ratio of 3.14, which suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, G. M. Polyplast Ltd. has a higher PE ratio than the industry average, which is reflected in its classification as very expensive. For instance, its EV to EBITDA ratio of 10.25 is notably higher than the peer average of 10.25, indicating a less favorable valuation. Additionally, the company's recent stock performance has been underwhelming, with a year-to-date return of -42.52% compared to a 5.58% return for the Sensex, further reinforcing the perception of overvaluation.