Is Promax Power overvalued or undervalued?

As of 7 October 2025, the valuation grade for Promax Power has moved from risky to expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 29.38, an EV to EBIT of 17.68, and a ROE of 7.79%. In comparison, NTPC, which is rated attractive, has a PE ratio of 13.67, while Tata Power Co., also rated attractive, has a PE ratio of 30.34.
Promax Power's current valuation appears excessive when compared to its peers, particularly given its low ROE and the high PE ratio relative to NTPC and others in the sector. The recent stock performance shows a significant decline of 37.88% year-to-date, contrasting with a modest 4.85% gain in the Sensex, further reinforcing the notion that Promax Power is overvalued in the current market environment.