Is Kalana Ispat overvalued or undervalued?

Sep 17 2025 08:05 AM IST
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As of September 16, 2025, Kalana Ispat is considered overvalued with a PE ratio of 45.58, higher than its peers Tata Steel and Jindal Steel, and has underperformed the Sensex year-to-date.
As of 16 September 2025, the valuation grade for Kalana Ispat has moved from fair to expensive, indicating that the company is currently overvalued. The key ratios reflect this assessment, with a PE ratio of 45.58, an EV to EBIT of 33.60, and an EV to EBITDA of 25.54. These figures suggest that the stock is trading at a premium compared to its earnings and cash flow generation capabilities.

In comparison to peers, Kalana Ispat's PE ratio is higher than that of Tata Steel, which has a PE of 44.24 and is rated attractive, as well as Jindal Steel, which is rated fair with a PE of 25.58. This disparity highlights Kalana Ispat's overvaluation relative to its industry counterparts. Additionally, while the stock has shown a recent weekly return of 3.17%, it has underperformed the Sensex year-to-date, with a decline of 4.73% compared to the Sensex's gain of 6.74%.
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Our weekly and monthly stock recommendations are here
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