Is Parmeshwar Metal overvalued or undervalued?

As of 28 August 2025, the valuation grade for Parmeshwar Metal has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued based on its PE ratio of 9.76, an EV to EBIT of 8.90, and an EV to EBITDA of 8.35. Comparatively, peers such as Coal India, which has a PE of 6.96, and NMDC, with a PE of 9.25, suggest that Parmeshwar Metal is trading at a premium relative to its industry counterparts.
With a return on capital employed (ROCE) of 25.17% and a return on equity (ROE) of 29.51%, Parmeshwar Metal demonstrates strong profitability metrics; however, these do not justify its current valuation levels when compared to peers. The stock has shown a 4.48% return over the past month, contrasting with a slight decline in the Sensex, which reinforces the notion that the stock may be overvalued in the current market environment.