Yes, it is, altough proper documentation isn’t really there.
The basics are summed up in this thread:
Go trough especially the second part, 2. Advanced compiling: multiple components, projects with modules, updating.
You just need to wrap your head around the .ghpy build process. It is possible to do basically anything you could in C# written plugin (you are still using exactly the same .NET SDK, just with IronPython).
If you want, I can share a “template” project that I used for larger plugin written fully in python.
For more questions @piac is probably the best person to ask.