Is Popular Vehicles overvalued or undervalued?

As of 27 June 2025, the valuation grade for Popular Vehicles has moved from attractive to very attractive. The company is currently considered undervalued, primarily due to its significantly negative PE ratio of -87.84, a Price to Book Value of 1.44, and an EV to EBITDA of 11.67. In comparison to its peers, M & M has a PE ratio of 30.83 and an EV to EBITDA of 15.76, while Maruti Suzuki shows a PE of 27.45 and an EV to EBITDA of 19.44, highlighting Popular Vehicles' relative undervaluation.
Despite the company's recent stock performance, which has seen a decline of 47.36% over the past year compared to a 6.08% gain in the Sensex, the underlying valuation metrics suggest that there is potential for recovery. The low EV to Sales ratio of 0.33 further supports the notion that the market may be undervaluing the company's assets and future earnings potential.