Is Paramount Specia overvalued or undervalued?

As of 24 October 2025, the valuation grade for Paramount Special has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios include a PE ratio of 15.85, an EV to EBITDA of 9.54, and a ROE of 8.60%.
In comparison to its peers, Paramount's PE ratio is notably lower than that of Thermax, which stands at 58.16, and BEML Ltd at 61.79, both of which are categorized as very expensive. However, despite the lower PE, the overall valuation suggests that Paramount is not justified at its current price level. Additionally, the company's stock has underperformed significantly against the Sensex, with a year-to-date return of -44.66% compared to the Sensex's 9.09%, reinforcing the notion of overvaluation.