Is K2 Infragen overvalued or undervalued?

As of 24 September 2025, K2 Infragen's valuation grade has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, supported by a PE ratio of 6.96, an EV to EBITDA ratio of 5.94, and a Price to Book Value of 1.06. These ratios suggest that K2 Infragen is trading at a significant discount compared to its earnings and asset values.
In comparison to its peers, K2 Infragen stands out with a much lower PE ratio than Rail Vikas, which has a PE of 60.82, and Tube Investments, which is at 97.65. Additionally, its EV to EBITDA ratio of 5.94 is substantially lower than that of its peers, reinforcing the undervaluation narrative. Despite recent stock performance showing a year-to-date decline of 59.96% compared to a 5.97% gain in the Sensex, the fundamental metrics suggest that K2 Infragen offers a compelling investment opportunity at its current price of 64.25.