Is PPAP Automotive overvalued or undervalued?

As of 1 July 2025, the valuation grade for PPAP Automotive has moved from very attractive to attractive, indicating a shift in its perceived value. The company is currently assessed as overvalued. Key ratios include a PE Ratio of 48.38, an EV to EBITDA of 8.87, and a PEG Ratio of 0.32, which suggests that while growth expectations are high, the current price may not justify these valuations.
In comparison to its peers, PPAP Automotive's PE Ratio is significantly higher than Samvardhana Motherson's 28.15 and Motherson Wiring's 43.46, both of which are also rated attractive. Additionally, while PPAP's EV to EBITDA of 8.87 is lower than some peers, it remains elevated compared to the industry average. Notably, PPAP has outperformed the Sensex on a year-to-date basis with a return of 7.84% compared to the Sensex's 7.11%, but its long-term performance lags behind the broader market.