Is Manali Petrochem overvalued or undervalued?

As of 25 June 2025, the valuation grade for Manali Petrochem has moved from expensive to very expensive, indicating a significant shift in its market positioning. The company is currently deemed overvalued. Key ratios include a PE Ratio of 38.25, an EV to EBITDA of 17.16, and a PEG Ratio of 0.68, all of which suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Manali Petrochem's PE Ratio is substantially higher than Agarwal Industrial's 12.58 and T N Petro Products' 20.12, both of which are categorized as attractive or very expensive, respectively. This stark contrast highlights the overvaluation of Manali Petrochem in the current market. Additionally, while the stock has shown a YTD return of 10.74%, it has underperformed over the longer term, with a 1Y return of -27.00% compared to the Sensex's 6.02%, reinforcing the notion that the stock may not justify its current price level.