Is Praj Industries overvalued or undervalued?

Nov 13 2025 08:07 AM IST
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As of November 12, 2025, Praj Industries is considered overvalued with a valuation grade of expensive, reflected in its high PE ratio of 58.41 and underperformance against the Sensex, which raises concerns about its market value compared to peers.
As of 12 November 2025, the valuation grade for Praj Industries has moved from fair to expensive, indicating a shift in perception regarding its market value. The company appears to be overvalued at this time. Key ratios reflect this assessment, with a PE ratio of 58.41, an EV to EBITDA of 25.57, and a Price to Book Value of 4.74, all suggesting a premium valuation compared to industry norms.

In comparison to its peers, Praj Industries' PE ratio is higher than that of Thermax at 61.43 and BEML Ltd at 56.53, both of which are also considered expensive. The EV to EBITDA ratio of 25.57 further emphasizes the premium, especially when compared to Action Construction Equipment, which stands at 23.07. Additionally, Praj Industries has underperformed against the Sensex, with a year-to-date return of -59.17% compared to the Sensex's 8.10%, reinforcing the notion that the stock may be overvalued in the current market context.
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