Is Prima Plastics overvalued or undervalued?

As of 31 October 2025, the valuation grade for Prima Plastics has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key ratios supporting this assessment include a PE Ratio of 8.86, a Price to Book Value of 0.82, and an EV to EBITDA of 7.61, all of which are considerably lower than industry peers.
In comparison to its peers, Prima Plastics stands out with a much lower PE Ratio than Supreme Industries at 57.1 and Astral at 80.07, both categorized as very expensive. Additionally, its EV to EBITDA ratio of 7.61 is favorable compared to Finolex Industries at 26.86, which is rated as fair. Despite a challenging year-to-date stock return of -21.08%, Prima Plastics has outperformed the Sensex over the last three and five years, with returns of 57.65% and 191.30%, respectively, reinforcing its undervalued status in the current market.