Is Polymechplast Ma overvalued or undervalued?

As of 7 November 2025, the valuation grade for Polymechplast Ma has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently considered overvalued. Key ratios highlight this assessment: the PE ratio stands at 51.42, the EV to EBITDA ratio is 17.76, and the ROE is only 2.75%, which is quite low compared to industry standards.
In comparison with peers, Polymechplast Ma's PE ratio is lower than Thermax's 56.7 and BEML Ltd's 56.53, yet it remains significantly high relative to other companies in the sector. Notably, ISGEC Heavy, which is rated attractive, has a PE of just 24.33, further emphasizing Polymechplast Ma's overvaluation. Despite a recent positive stock return of 3.07% over the past week compared to a -0.86% return for the Sensex, the long-term performance shows a decline, with a year-to-date return of -18.89% against the Sensex's 6.50%.