Is Paramount Cosmet overvalued or undervalued?

As of 18 November 2025, Paramount Cosmet's valuation grade has moved from attractive to very attractive, indicating a significant shift in its perceived value. The company is currently considered undervalued, especially when comparing its ratios to industry peers. Notably, Paramount Cosmet has a PE ratio of 297.37, an EV to EBITDA of 21.77, and a Price to Book Value of 0.87, which suggests that despite its high PE ratio, it may be undervalued relative to its book value.
In comparison to its peers, Hindustan Unilever has a PE ratio of 53.39 and an EV to EBITDA of 37.82, while Nestle India shows a PE ratio of 81.48 and an EV to EBITDA of 50.54. These figures highlight that Paramount Cosmet's valuation metrics are considerably lower than those of its more expensive peers, reinforcing the conclusion that it is undervalued. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -23.91% compared to the Sensex's 8.36%, further supporting the notion that the market may not fully recognize its value.