Is Prince Pipes overvalued or undervalued?

As of 16 September 2025, the valuation grade for Prince Pipes has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently deemed overvalued, with a PE ratio of 161.21, an EV to EBIT of 126.35, and an EV to EBITDA of 27.41. These ratios significantly exceed those of its peers, such as Finolex Industries, which has a PE ratio of 34.18 and an EV to EBITDA of 32.19, and Time Technoplast, which is valued fairly with a PE ratio of 27.36.
The high valuation metrics suggest that Prince Pipes is trading at a premium compared to its industry counterparts, reflecting concerns about its growth prospects and profitability, as evidenced by a low ROE of 1.48% and a ROCE of 3.14%. Additionally, the company's recent stock performance has been lackluster, with a year-to-date return of -21.23%, contrasting sharply with the Sensex's 5.43% gain in the same period, further reinforcing the notion that the stock may be overvalued in the current market environment.