Is Kalahridhaan overvalued or undervalued?

As of 16 June 2025, the valuation grade for Kalahridhaan has moved from risky to does not qualify, indicating a significant deterioration in its financial standing. The company appears to be overvalued based on its current metrics, with a PE ratio of 1.83, an EV to EBITDA of 3.80, and a Price to Book Value of 0.81. These ratios suggest that the stock is not just underperforming but is also mispriced relative to its earnings and asset values.
In comparison to its peers, Kalahridhaan's valuation metrics are starkly lower than those of K P R Mill Ltd, which has a PE ratio of 45.76, and Trident, which stands at 41.88. The significant disparity in these ratios highlights that Kalahridhaan is not only lagging behind its competitors but also raises concerns about its future profitability and market position. Additionally, the company's stock has underperformed dramatically, with a year-to-date return of -65.8% compared to a 5.51% gain in the Sensex, further reinforcing the notion that it is overvalued in the current market environment.