Is Pasari Spinning overvalued or undervalued?

As of 11 September 2025, the valuation grade for Pasari Spinning has moved from does not qualify to very expensive, indicating a significant shift in its market perception. The company is currently assessed as overvalued, with a PE ratio of 11.77, an EV to EBITDA ratio of 13.33, and a PEG ratio of 5.05, which suggests that its earnings growth does not justify its current price.
In comparison to peers, K P R Mill Ltd has a much higher PE ratio of 41.25, while Vardhman Textile, which is considered fair, has a PE ratio of 14.73. This stark contrast highlights that Pasari Spinning's valuation is not aligned with its financial performance relative to its competitors. Additionally, despite a recent stock return of 3.27% over the past week, the year-to-date return of -14.27% indicates a decline that further supports the overvaluation narrative.