Is Praj Industries overvalued or undervalued?

As of 17 November 2025, Praj Industries has moved from an expensive to a fair valuation grade. The company is currently fairly valued, with a PE ratio of 58.15, an EV to EBITDA of 25.46, and a Price to Book Value of 4.72. In comparison to peers, Thermax has a higher PE of 60.51 and an EV to EBITDA of 39.75, while BEML Ltd is even more expensive with a PE of 56.55 and an EV to EBITDA of 34.26, indicating that Praj Industries is relatively more attractively priced within its industry.
Despite its fair valuation, Praj Industries has experienced significant underperformance relative to the Sensex, with a year-to-date return of -59.36% compared to the Sensex's 8.72%. This underperformance, along with a PEG ratio of 0.00, suggests that while the company is fairly valued, it may face challenges in generating growth that meets investor expectations.