Is Paramount Specia overvalued or undervalued?

As of 23 September 2025, the valuation grade for Paramount Special moved from very expensive to expensive, indicating a slight improvement in perceived value. However, the company is still considered overvalued based on its current metrics. The PE ratio stands at 16.80, while the EV to EBITDA ratio is 10.05, and the EV to Sales ratio is 0.77. These ratios suggest that while the company is not at the highest end of the valuation spectrum, it still does not present a compelling investment opportunity at its current price.
In comparison to its peers, Paramount Special's PE ratio of 16.80 is significantly lower than that of Thermax, which has a PE ratio of 59.66, and BEML Ltd, with a PE ratio of 60.41, both categorized as very expensive. Despite this, the overall valuation still leans towards overvaluation, particularly when considering the company's recent stock performance, which has underperformed against the Sensex, showing a year-to-date decline of 41.35% compared to the Sensex's gain of 6.45%.