Is Kalpat. overvalued or undervalued?

As of 29 August 2025, Kalpat. has moved from a grade of "does not qualify" to "expensive," indicating a significant shift in its valuation. The company is currently overvalued, with a PE ratio of 361.92, an EV to EBITDA ratio of 297.87, and a Price to Book Value of 3.15. These ratios suggest that the stock is trading at a premium compared to its earnings and book value, raising concerns about its sustainability.
In comparison to its peers, Kalpat.'s valuation stands out starkly. For instance, DLF has a PE ratio of 38.29 and an EV to EBITDA of 81.41, while Lodha Developers shows a PE of 40.42 and an EV to EBITDA of 29.51. This highlights that Kalpat. is significantly more expensive than its competitors, which further supports the conclusion of overvaluation. Additionally, the company's recent stock performance has lagged behind the Sensex, with a 1-month return of -6.58% compared to the Sensex's -1.88%, reinforcing the notion that investors may be overestimating its future growth potential.