Is Uma Converter overvalued or undervalued?

As of 28 August 2025, the valuation grade for Uma Converter has moved from very expensive to attractive. This indicates a significant shift in the perception of the company's value, suggesting that it is currently undervalued. The key ratios supporting this assessment include a PE ratio of 18.55, an EV to EBIT of 12.07, and an EV to Sales of 0.51, all of which reflect a favorable valuation compared to its peers.
In comparison to its peers, Uma Converter's PE ratio is slightly lower than Garware Hi Tech's 19.57 and significantly lower than Huhtamaki India's 21.91, both of which are rated fair. Additionally, AGI Greenpac, rated very attractive, has a PE ratio of 16.94, indicating that Uma Converter's valuation is competitive within the industry. Despite recent underperformance relative to the Sensex, with a year-to-date return of -19.15% compared to the Sensex's 3.62%, the current valuation metrics suggest that Uma Converter presents a compelling investment opportunity.