Is PPAP Automotive overvalued or undervalued?

As of 22 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 is currently considered undervalued. Key ratios include a PE ratio of 68.59, an EV to EBITDA of 8.89, and a PEG ratio of 0.47, which suggest that despite a high PE ratio, the growth potential is being undervalued relative to its earnings growth.
In comparison to its peers, PPAP Automotive's PE ratio is higher than Bosch's 52.48 and Samvardhana Motherson's 33.93, yet it has a more favorable PEG ratio than both, indicating better growth prospects. Additionally, PPAP's EV to Sales ratio of 0.89 is lower than the industry average, reinforcing its undervaluation. While the stock has shown a 6.13% return over the past week compared to the Sensex's 0.46%, its longer-term performance has lagged behind the index, suggesting potential for future upside as the market recognizes its value.