Is Manali Petrochem overvalued or undervalued?

As of 9 July 2025, the valuation grade for Manali Petrochem has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios include a PE ratio of 38.20, an EV to EBITDA of 17.13, and a PEG ratio of 0.68, which suggests that despite a relatively low growth expectation, the stock price remains high compared to its earnings growth.
In comparison to peers, Agarwal Industrial has a much lower PE ratio of 12.1 and an EV to EBITDA of 8.65, highlighting the disparity in valuation within the sector. T N Petro Products, also classified as very expensive, has a PE of 20.8, further emphasizing that Manali Petrochem's valuation is significantly higher than its peers. While the company's recent stock performance has outpaced the Sensex in the short term, with a 1-month return of 20.27% compared to the Sensex's 1.32%, the longer-term outlook remains concerning with a 1-year return of -31.34%, reinforcing the notion that the stock is overvalued.