Is TPL Plastech overvalued or undervalued?

As of 4 July 2025, TPL Plastech's valuation grade has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 27.33, an EV to EBITDA of 16.90, and a Price to Book Value of 4.37, all of which suggest that the stock is trading at a premium compared to its earnings and assets.
In comparison to its peers, TPL Plastech's valuation stands out as it is priced lower than Supreme Industries (PE of 56.34) and Astral (PE of 76.13), yet it remains in the very expensive category alongside these companies. Notably, Finolex Industries, which is categorized as expensive, has a PE ratio of 27.48, indicating that TPL Plastech is still trading at a higher valuation despite its lower earnings multiple. Additionally, TPL Plastech has underperformed the Sensex year-to-date, with a return of -18.12% compared to the Sensex's 6.77%, reinforcing the notion that the stock may be overvalued in the current market environment.