Is Prima Plastics overvalued or undervalued?

As of 10 November 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, with a price-to-earnings (PE) ratio of 8.75, a price-to-book value of 0.81, and an EV to EBITDA ratio of 7.53. These ratios suggest that Prima Plastics is trading at a discount compared to its earnings and book value.
In comparison to its peers, Prima Plastics stands out with its low PE ratio, especially when contrasted with Supreme Industries and Astral, which have PE ratios of 57.96 and 82.76, respectively. Additionally, the company's PEG ratio is at 0.00, further reinforcing its undervaluation. Despite recent stock performance lagging behind the Sensex, particularly with a year-to-date return of -22.08% versus the Sensex's 6.91%, the long-term outlook remains positive, as evidenced by a 3-year return of 55.56%.