Is Kabra Extrusion overvalued or undervalued?

As of 22 August 2025, the valuation grade for Kabra Extrusion has moved from very attractive to attractive. The company is currently considered overvalued, given its high PE ratio of 58.75, an EV to EBITDA ratio of 24.69, and a Price to Book Value of 1.88. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Kabra Extrusion's PE ratio is higher than Thermax's 57.97 and BEML Ltd's 56.14, both of which are categorized as expensive. Additionally, the company's ROCE of 4.77% and ROE of 5.28% indicate relatively low returns on capital and equity, further supporting the overvaluation verdict. Notably, Kabra Extrusion has underperformed the Sensex significantly over various time frames, with a year-to-date return of -55.03% compared to the Sensex's 4.05%, highlighting potential concerns regarding its market position.