Is Paramount Specia overvalued or undervalued?

As of 3 November 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 metrics. The price-to-earnings (PE) ratio stands at 15.41, while the EV to EBITDA ratio is 9.31, and the EV to EBIT ratio is 11.21. These ratios suggest that the company is priced higher relative to its earnings potential compared to its peers.
In comparison to its industry peers, Paramount Special's PE ratio is significantly lower than that of Thermax, which has a PE of 56.9, and BEML Ltd, with a PE of 60.86, both categorized as very expensive. This disparity highlights that while Paramount Special is deemed expensive, it is relatively more attractive than some of its peers. Furthermore, the company's stock performance has been underwhelming, with a year-to-date return of -46.2%, contrasting sharply with a 8.96% gain in the Sensex over the same period, reinforcing the view that Paramount Special is overvalued.