Is Paradeep Phosph. overvalued or undervalued?

As of 20 August 2025, Paradeep Phosph. has moved from expensive to very expensive in its valuation grade. The company is currently considered overvalued. Key ratios include a PE ratio of 21.87, an EV to EBITDA of 13.17, and a PEG ratio of 0.09, which indicates a high price relative to its earnings growth potential.
In comparison to its peers, Paradeep Phosph. has a lower PE ratio than Coromandel International, which stands at 35.9, but is higher than Chambal Fertilizers at 12.89. Additionally, while Paradeep's EV to EBITDA ratio is 13.17, it is significantly higher than that of Chambal Fertilizers, which is 8.66. Despite its strong stock performance, with a year-to-date return of 93.51% compared to the Sensex's 4.76%, the current valuation suggests that the stock may not be a prudent investment at this time.