Is Paramount Dye overvalued or undervalued?

As of 17 September 2025, the valuation grade for Paramount Dye has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently assessed as undervalued, especially when considering its low PE ratio of 4.50, an EV to EBITDA of 4.89, and a robust ROE of 23.97%. These metrics suggest that the stock is trading at a discount compared to its earnings and cash flow generation capabilities.
In comparison to its peers, Paramount Dye stands out with a much lower PE ratio than K P R Mill Ltd, which is at 45.93, and Trident, which has a PE of 35.01. Additionally, the PEG ratio of 0.00 further emphasizes the potential for growth relative to its price. Despite recent stock performance lagging behind the Sensex, with a year-to-date return of -39.81%, the underlying fundamentals suggest that Paramount Dye is well-positioned for future appreciation, reinforcing its undervalued status in the market.