Is Malpani Pipes overvalued or undervalued?

As of 16 October 2025, the valuation grade for Malpani Pipes has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued based on its key financial ratios, including a PE Ratio of 11.15, an EV to EBIT of 9.00, and an EV to EBITDA of 8.19. These figures suggest that the company's valuation does not align favorably with its earnings potential.
In comparison to its peers, Malpani Pipes stands out with a PE Ratio of 11.15, while Supreme Industries and Astral are significantly higher at 60.66 and 80.11, respectively, both categorized as very expensive. Conversely, Finolex Industries is considered fair with a PE Ratio of 29.84, highlighting that Malpani Pipes may not offer a compelling investment opportunity relative to its industry peers. Additionally, the company's recent stock performance has outpaced the Sensex, with a 1-week return of 17.64% compared to the Sensex's 1.58%, yet this does not mitigate the overall assessment of being overvalued.