Is Paramount Dye overvalued or undervalued?

As of 23 September 2025, the valuation grade for Paramount Dye has moved from very attractive to attractive. The company is currently assessed as undervalued, with a PE ratio of 4.50, an EV to EBITDA ratio of 4.89, and a ROE of 23.97%. In comparison, K P R Mill Ltd is classified as very expensive with a PE ratio of 46.3, while Vardhman Textile is considered fair with a PE ratio of 14.19.
Despite recent stock performance showing a decline of 39.93% year-to-date against a Sensex return of 6.45%, the underlying financial ratios indicate that Paramount Dye remains an appealing investment opportunity within the garments and apparel industry. The company's strong return on capital employed at 18.70% further supports its undervalued status.