Is Polymechplast Ma overvalued or undervalued?

As of 15 September 2025, the valuation grade for Polymechplast Ma has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued, with a PE ratio of 32.42, an EV to EBIT of 27.21, and a Price to Book Value of 1.27. In comparison to its peers, Thermax has a significantly higher PE ratio of 59.01 and an EV to EBITDA of 38.92, while ISGEC Heavy, considered attractive, has a lower PE of 27.83 and an EV to EBITDA of 14.89.
Despite a strong historical performance over the long term, recent returns show that Polymechplast Ma has underperformed against the Sensex, particularly in the year-to-date period with a decline of 20.09% compared to a 4.67% increase in the Sensex. This trend reinforces the conclusion that the stock is currently overvalued relative to its earnings potential and market performance.