Is PPAP Automotive overvalued or undervalued?

As of 17 September 2025, the valuation grade for PPAP Automotive has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company appears to be undervalued, particularly when considering its key ratios: a PE ratio of 67.22, an EV to EBITDA of 8.77, and a PEG ratio of 0.46. These figures suggest that, despite a high PE ratio, the company's growth potential is not fully reflected in its current price.
In comparison to its peers, PPAP Automotive stands out with a PEG ratio of 0.46, while Bosch, categorized as expensive, has a PEG ratio of 3.24, and Samvardhan Motherson, which is attractive, has a PEG of 15.1. This indicates that PPAP Automotive offers better growth at a lower price relative to its earnings growth. Additionally, the company has shown a notable stock return of 5.25% over the past week compared to a 1.56% return from the Sensex, reinforcing the argument for its undervaluation.