Is G M Polyplast overvalued or undervalued?

As of 4 August 2025, G M Polyplast has moved from a valuation grade of very expensive to very attractive, indicating a significant shift in its market perception. The company is currently considered undervalued, with a PE ratio of 15.38, an EV to EBIT of 10.93, and an impressive ROCE of 26.76%. In comparison to its peers, G M Polyplast stands out with a more favorable valuation, particularly against Supreme Industries, which has a PE ratio of 61.43, and Astral, with a PE ratio of 73.38.
This valuation is further supported by its strong performance metrics, such as a ROE of 18.98% and an EV to EBITDA ratio of 9.76, which are competitive within the industry. While the stock has faced challenges in the short term, with a year-to-date return of -42.95% compared to a slight gain of 3.69% in the Sensex, its long-term performance has been robust, with a 3-year return of 103.15%. Overall, G M Polyplast presents a compelling investment opportunity given its current valuation and performance relative to peers.