Is Praj Industries overvalued or undervalued?

As of 18 November 2025, Praj Industries has moved from a fair to an expensive valuation grade. The company is currently overvalued, with a PE ratio of 60.04, a Price to Book Value of 4.87, and an EV to EBITDA of 26.31. These ratios indicate a significant premium compared to its peers, such as Thermax with a PE of 59.17 and an EV to EBITDA of 38.85, and BEML Ltd, which is very expensive with a PE of 55.7.
The valuation metrics suggest that Praj Industries is trading at a higher valuation than many of its competitors, which raises concerns about its current price level. Additionally, the company's year-to-date return of -58.04% starkly contrasts with the Sensex's positive return of 8.36%, further reinforcing the notion that the stock may be overvalued in the current market context.