Is Premco Global overvalued or undervalued?

As of 7 November 2025, Premco Global's valuation grade has moved from fair to very attractive, indicating a significant improvement in its investment appeal. The company is currently considered undervalued, particularly when examining its key financial ratios. The PE ratio stands at 19.18, while the Price to Book Value is remarkably low at 0.18, suggesting that the stock is trading well below its intrinsic value. Additionally, the EV to EBITDA ratio is at -1.06, which further emphasizes the company's undervaluation relative to its earnings potential.
In comparison to its peers, Premco Global's valuation metrics are compelling. For instance, K P R Mill Ltd is deemed very expensive with a PE ratio of 43.65, while Vardhman Textile, which is considered attractive, has a PE ratio of 15.12. This positions Premco Global favorably within the industry, especially given its strong dividend yield of 7.81% and a ROE of 0.94%. Notably, Premco Global has outperformed the Sensex over various time frames, including a 1-year return of 22.84% compared to the Sensex's 4.62%, reinforcing its attractive valuation narrative.