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 the company's perceived value. The company is currently overvalued, with a PE ratio of 290.49, an EV to EBITDA of 35.69, and a ROE of 5.28%. These ratios suggest that the stock is trading at a premium compared to its earnings and cash flow generation capabilities.
In comparison to its peers, Kabra Extrusion's valuation stands out starkly; for instance, Thermax has a PE ratio of 56.7 and an EV to EBITDA of 37.35, while BEML Ltd shows a PE of 56.53 and an EV to EBITDA of 45.17. This highlights that Kabra Extrusion is significantly more expensive relative to its earnings potential. Additionally, the company's stock has underperformed the Sensex, with a year-to-date return of -58.19% compared to the Sensex's positive return of 6.50%. This further reinforces the conclusion that Kabra Extrusion is currently overvalued in the market.