Is Paragon Fine overvalued or undervalued?

As of 26 August 2025, Paragon Fine's valuation grade has moved from very attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 19.30, an EV to EBITDA of 11.61, and a ROE of 7.09%. In comparison to its peers, Solar Industries is considered very expensive with a PE of 101.49, while Godrej Industries is attractive with a PE of 42.36, highlighting that Paragon Fine's valuation is more reasonable within the industry context.
Despite the fair valuation, Paragon Fine has experienced significant declines in stock performance, with a year-to-date return of -37.81% compared to a positive 4.51% return for the Sensex. This disparity suggests that while the company is fairly valued, market sentiment may be weighing on its stock price more heavily than its fundamentals would imply.