Is K2 Infragen overvalued or undervalued?

As of 11 September 2025, K2 Infragen's valuation grade has moved from attractive to fair, indicating a shift in market perception. The company is currently fairly valued based on its key financial ratios, including a PE Ratio of 7.84, an EV to EBITDA of 5.16, and a ROE of 36.59%. Compared to peers, K2 Infragen's valuation appears more favorable; for instance, Rail Vikas is considered expensive with a PE of 58.85, while Craftsman Auto is also fair with a PE of 69.36.
In summary, K2 Infragen is fairly valued at this time. Despite its recent stock performance showing a significant decline of 72.11% over the past year, it has outperformed the Sensex in the short term, with a 1-week return of 19.88% compared to the Sensex's 1.10%. This suggests that while the company is currently stable in valuation, it faces challenges in the longer term.