Is Parmeshwar Metal overvalued or undervalued?

As of 23 July 2025, the valuation grade for Parmeshwar Metal has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of 9.74, an EV to EBIT of 8.89, and an EV to EBITDA of 8.34. In comparison to its peers, Coal India is rated as very attractive with a PE of 6.81 and NMDC is rated as fair with a PE of 9.81, highlighting that Parmeshwar Metal's valuation is not justified relative to its industry counterparts.
The company's financial metrics suggest a premium valuation that does not align with its performance, as evidenced by a PEG ratio of 0.00 and a ROCE of 25.17%. Recent stock performance shows Parmeshwar Metal outpacing the Sensex over the past week, with a return of 7.54% compared to the Sensex's 0.11%. However, this short-term gain does not mitigate the overall overvaluation indicated by the current metrics and peer comparisons.