Is Praj Industries overvalued or undervalued?

As of 6 November 2025, the valuation grade for Praj Industries has moved from very attractive to expensive. Based on the analysis, the company is currently overvalued. Key ratios indicate this valuation: the PE ratio stands at 58.19, the EV to EBITDA ratio is at 12.67, and the Price to Book Value is notably low at 0.47, suggesting that the market may be pricing the stock too high relative to its book value.
In comparison to peers, Praj Industries has a higher PE ratio than Thermax, which is at 57.56, and significantly higher than ISGEC Heavy, which has a PE of 24.27. The PEG ratio for Praj is 0.00, indicating no growth expectations are priced in, which further supports the notion of overvaluation. Additionally, the stock has underperformed against the Sensex, with a year-to-date return of -59.33% compared to the Sensex's 6.62%, reinforcing the view that the stock is not currently a favorable investment.