Is PPAP Automotive overvalued or undervalued?

As of 19 May 2025, the valuation grade for PPAP Automotive has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 48.33, an EV to EBITDA of 8.86, and a PEG ratio of 0.32, which suggests strong growth potential relative to its price.
In comparison to its peers, PPAP Automotive's PE ratio is notably higher than Samvardhan Motherson's 29.14, yet lower than Uno Minda's 66.72, which is categorized as expensive. Additionally, PPAP's EV to EBITDA ratio of 8.86 is more favorable than Samvardhan Motherson's 11.53, reinforcing its competitive positioning in the market. The company's recent stock performance has outpaced the Sensex, with a 1-month return of 53.43% compared to the Sensex's 3.86%, further supporting the argument for its undervaluation.