Is Prima Plastics overvalued or undervalued?

As of 4 November 2025, the valuation grade for Prima Plastics has moved from very attractive to attractive, indicating a shift in market perception. The company is currently considered undervalued, with a PE ratio of 8.98, a price-to-book value of 0.83, and an EV to EBITDA ratio of 7.70. These metrics suggest that Prima Plastics is trading at a significant discount compared to its peers, particularly when compared to Supreme Industries and Astral, which are classified as very expensive with PE ratios of 58.2 and 81.51, respectively.
Despite a recent decline in stock performance relative to the Sensex, where Prima Plastics has seen a YTD return of -20.02% compared to the Sensex's 6.81%, the company's fundamentals remain strong. With a ROE of 9.52% and a dividend yield of 1.47%, Prima Plastics presents an attractive investment opportunity in the diversified consumer products sector.