Is Polymechplast Ma overvalued or undervalued?

As of 7 October 2025, the valuation grade for Polymechplast Ma has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics, with a PE ratio of 27.50, an EV to EBITDA of 14.29, and a Price to Book Value of 1.08. In comparison to peers, Thermax is considered expensive with a PE of 56.75 and EV to EBITDA of 37.39, while ISGEC Heavy is attractive with a PE of 24.95 and EV to EBITDA of 13.47, suggesting that Polymechplast Ma is positioned reasonably within its industry.
Despite its fair valuation, Polymechplast Ma has underperformed relative to the Sensex, with a year-to-date return of -32.21% compared to the Sensex's 4.85%. This underperformance, coupled with a low ROE of 2.75% and a dividend yield of 2.04%, raises concerns about its growth prospects. Overall, while the company is fairly valued, the significant decline in stock performance relative to the market may warrant caution for potential investors.