Is Premco Global overvalued or undervalued?

As of 14 May 2025, Premco Global's valuation grade has moved from expensive to attractive, indicating a significant shift in its market perception. The company is currently deemed undervalued. Key ratios supporting this conclusion include a PE ratio of 15.34, an EV to EBITDA of 8.67, and a dividend yield of 10.19%.
In comparison to its peers, Premco Global's valuation metrics stand out, particularly against K P R Mill Ltd, which has a PE ratio of 47.51 and is classified as very expensive, and Vardhman Textile, which has a PE ratio of 15.86 and is considered expensive. The attractive valuation of Premco Global is further reinforced by its competitive dividend yield and solid return on capital employed (ROCE) of 10.01%. Notably, while the stock has underperformed the Sensex over the past week and month, it has outpaced the index over a one-year period, suggesting potential for future growth.