Is Kabsons Industri overvalued or undervalued?

As of 14 November 2025, the valuation grade for Kabsons Industri has moved from fair to very expensive. This indicates that the company is currently overvalued. Key ratios highlight this assessment: the PE ratio stands at 37.40, the EV to EBIT is 28.72, and the EV to EBITDA is 21.92. These figures suggest that the company's valuation metrics are significantly higher than industry norms.
In comparison to peers, Kabsons Industri's PE ratio is notably higher than that of Petronet LNG, which has a PE of 11.19 and is considered attractive. Other peers like Linde India and Ellen. Indl. Gas also reflect very expensive valuations, with PE ratios of 95.6 and 74.15, respectively. Despite these comparisons, Kabsons' high valuation does not seem justified given its low ROCE of 0.50% and ROE of 5.35%. Additionally, the company's stock has underperformed against the Sensex, with a year-to-date return of -44.52% compared to the Sensex's 8.22%, reinforcing the notion that it is overvalued.