Is Polylink Poly. overvalued or undervalued?

As of 8 August 2025, the valuation grade for Polylink Poly. has moved from very attractive to attractive, indicating a shift in market perception. The company is currently considered overvalued based on its key financial ratios. The PE ratio stands at 39.95, while the EV to EBITDA ratio is 18.56, and the EV to Sales ratio is notably low at 0.69, suggesting that despite a high price relative to earnings, the sales performance does not justify it.
In comparison to its peers, Polylink Poly. has a PE ratio that is significantly lower than Supreme Industries at 59.32 and Astral at 70.36, both of which are categorized as very expensive. However, it is higher than Finolex Industries, which has a PE of 29.51 and is rated fair. The company's recent stock performance has lagged behind the Sensex, particularly in the one-year period, where it has declined by 34.99% compared to a modest 1.23% increase in the Sensex. This underperformance further reinforces the notion that Polylink Poly. is currently overvalued.