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 value. The company is currently considered overvalued, with a staggering PE ratio of 290.49 and an EV to EBITDA ratio of 35.69, both of which are considerably higher than its peers. In comparison, Thermax, a peer in the industrial manufacturing sector, 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, highlighting the extreme valuation of Kabra Extrusion.
Additionally, Kabra Extrusion's ROCE stands at a mere 4.77% and ROE at 5.28%, which are low compared to industry standards. The company's recent stock performance has also been poor, with a year-to-date return of -58.19%, significantly underperforming the Sensex, which has gained 6.50% during the same period. This combination of high valuation ratios and weak financial performance suggests that Kabra Extrusion is overvalued in the current market.