Is Popular Vehicles overvalued or undervalued?

As of 20 June 2025, the valuation grade for Popular Vehicles has moved from attractive to very attractive. The company is currently assessed as undervalued, particularly given its PE ratio of -82.36, which indicates significant losses, alongside a Price to Book Value of 1.35 and an EV to EBITDA of 11.30. Despite these concerning ratios, the low EV to Sales of 0.32 suggests that the market may not be fully recognizing the company's potential.
In comparison to peers, Popular Vehicles stands out with a PEG ratio of 0.00, while Maruti Suzuki and M & M, both rated as attractive, have PEG ratios of 3.70 and 2.08, respectively. Tata Motors, also attractive, has a significantly lower EV to EBITDA of 4.41, highlighting that Popular Vehicles may be undervalued relative to its operational metrics. Additionally, the stock has underperformed relative to the Sensex over the past year, with a return of -53.86% compared to the Sensex's 6.36%, reinforcing the notion that the market may be undervaluing the company's potential recovery.