Is Kalyani Cast-Tec overvalued or undervalued?

As of 8 September 2025, Kalyani Cast-Tec's valuation grade has moved from fair to expensive, indicating a shift in its perceived market value. The company is currently overvalued, with a PE ratio of 30.05, a Price to Book Value of 8.50, and an EV to EBITDA ratio of 20.94. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Kalyani Cast-Tec's PE ratio is significantly lower than that of Rail Vikas, which stands at 58.19, while Tube Investments is even higher at 92. Conversely, Craftsman Auto is marked as fair with a PE of 69.88, indicating a more reasonable valuation in the sector. Notably, Kalyani Cast-Tec has outperformed the Sensex in recent periods, with a year-to-date return of 31.77% compared to the Sensex's 3.39%, reinforcing the notion that the stock may be experiencing speculative interest despite its overvaluation.