Is Kalana Ispat overvalued or undervalued?

As of 25 September 2025, Kalana Ispat's valuation grade has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued. Key ratios include a PE ratio of 37.18, an EV to EBITDA of 18.76, and a Price to Book Value of 1.05, which suggest that while the company is trading at a premium compared to its book value, it may still offer growth potential relative to its earnings.
In comparison to its peers, Kalana Ispat's PE ratio is lower than that of JSW Steel, which stands at 54.79, and Tata Steel, which has a PE of 44.32, indicating that Kalana Ispat may be undervalued in the context of its industry. Additionally, the company has a PEG ratio of 0.00, which further supports the notion of it being undervalued, especially when compared to Tata Steel's PEG of 0.86. Despite recent underperformance against the Sensex, with a year-to-date return of -22.3% compared to the Sensex's 5.27%, the attractive valuation suggests potential for recovery and growth moving forward.