Is Paramount Specia overvalued or undervalued?

As of 27 October 2025, the valuation grade for Paramount Special has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company remains overvalued based on its current financial metrics. The PE ratio stands at 15.19, while the EV to EBITDA ratio is 9.19, both of which are significantly lower than peers like Thermax, which has a PE ratio of 58.97 and an EV to EBITDA of 38.89. Additionally, the PEG ratio is at 0.00, suggesting that the stock may not be growing in line with its price.
In comparison to its peers, Paramount Special's financial ratios indicate that it is overvalued. The company's ROCE is at 11.39% and ROE at 8.60%, which do not justify its current price level when considering the performance of its peers. The stock has underperformed significantly, with a year-to-date return of -46.96%, compared to a 9.82% return for the Sensex, reinforcing the notion that the stock is overvalued in the current market environment.