Is Kabra Extrusion overvalued or undervalued?

As of 21 May 2025, the valuation grade for Kabra Extrusion has moved from attractive to very attractive, indicating a significant positive shift in its valuation outlook. The company is currently considered undervalued, with a PE ratio of 40.56, an EV to EBITDA of 21.27, and a PEG ratio of 0.00, which suggests that the stock may be undervalued relative to its growth potential.
In comparison to its peers, Kabra Extrusion's valuation metrics stand out. For instance, Thermax has a PE ratio of 66.31 and an EV to EBITDA of 45.24, while BEML Ltd shows a PE of 62.34 and an EV to EBITDA of 36.51, both categorized as very expensive. This positions Kabra Extrusion favorably within its industry, highlighting its potential for growth despite recent stock performance lagging behind the Sensex over the past year. The company's stock has returned 5.97% over the past week, outperforming the Sensex's 1.46% return, suggesting a positive momentum that could further support its valuation narrative.