Is SPP Polymer overvalued or undervalued?

As of 1 October 2025, SPP Polymer's valuation grade has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued based on its key financial ratios, including a PE ratio of 23.15, an EV to EBITDA ratio of 5.68, and a Price to Book Value of 0.53. These figures suggest that the stock is trading at a reasonable price relative to its earnings and assets.
In comparison to its peers, SPP Polymer stands out as more attractively valued than companies such as Supreme Industries, which has a PE ratio of 59.83, and Astral, with a PE of 76.45. While SPP Polymer's ROCE is relatively low at 4.00% and ROE at 2.30%, the overall valuation metrics indicate that it is positioned favorably against its industry counterparts. Despite a significant decline in stock performance year-to-date, with a drop of 47.85% compared to a 5.04% gain in the Sensex, the current valuation reflects an opportunity for potential investors.