Is TPL Plastech overvalued or undervalued?

As of 25 June 2025, the valuation grade for TPL Plastech has moved from expensive to very expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 26.87, an EV to EBITDA of 16.63, and a PEG ratio of 1.43, which indicate that the stock is trading at a premium compared to its earnings growth potential.
In comparison to peers, TPL Plastech's PE ratio is significantly lower than that of Supreme Industries at 58.21 and Astral at 76.98, both of which are also categorized as very expensive. However, it is worth noting that Finolex Industries, classified as expensive, has a PE ratio of 28.26, suggesting that even among its peers, TPL Plastech is not the most attractively priced. The company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -19.50% compared to the Sensex's 5.91%, further reinforcing the notion of overvaluation.