Is Paradeep Phosph. overvalued or undervalued?

As of 3 September 2025, the valuation grade for Paradeep Phosph. has moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 21.49, an EV to EBITDA of 12.97, and a PEG ratio of 0.08, which suggests that while the company has potential growth, its current valuation does not reflect that adequately.
When compared to peers, Paradeep Phosph. has a higher PE ratio than Chambal Fert. at 13.05 and Deepak Fertilisers at 18.55, both of which are rated attractive. Additionally, the company's recent stock performance has significantly outpaced the Sensex, with a year-to-date return of 90.18% compared to the Sensex's 3.11%. This strong performance may indicate market optimism, but the current valuation metrics suggest that the stock is not justified at its current price level.