Is Manali Petrochem overvalued or undervalued?

As of 1 July 2025, the valuation grade for Manali Petrochem has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued, with a PE ratio of 38.17, an EV to EBITDA of 17.12, and a PEG ratio of 0.68. These figures suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Agarwal Industrial has a much lower PE ratio of 12.64 and an EV to EBITDA of 8.96, highlighting the stark contrast in valuation. Additionally, T N Petro Products, also classified as very expensive, has a PE of 20.99, which further emphasizes Manali Petrochem's elevated valuation. Despite recent stock performance showing a 22.59% return over the past month compared to the Sensex's 2.76%, the long-term outlook remains concerning, as the company has underperformed the Sensex over the past year and three years.