Is Kabra Extrusion overvalued or undervalued?

As of 7 November 2025, the valuation grade for Kabra Extrusion has moved from fair to risky, indicating a significant shift in its perceived investment quality. The company is currently considered overvalued, with a staggering PE ratio of 290.49, an EV to EBITDA of 35.69, and a ROE of just 5.28%. These ratios suggest that the stock is trading at an excessively high valuation compared to its earnings and returns on equity.
In comparison to its peers, Kabra Extrusion's PE ratio far exceeds that of Thermax, which stands at 56.7, and BEML Ltd at 56.53, both of which are categorized as expensive. Additionally, the company's recent stock performance has been poor, with a year-to-date return of -58.19%, significantly underperforming the Sensex's gain of 6.50% during the same period. This combination of high valuation ratios and weak performance relative to peers reinforces the conclusion that Kabra Extrusion is overvalued in the current market environment.