Is Kalyani Cast-Tec overvalued or undervalued?

As of 24 September 2025, Kalyani Cast-Tec's valuation grade has moved from fair to expensive, indicating that the company is overvalued. The current PE ratio stands at 30.25, while the EV to EBITDA ratio is 20.86, and the PEG ratio is notably low at 0.63. These ratios suggest that despite a strong ROCE of 43.05% and ROE of 22.04%, the company's valuation metrics are significantly higher than those of its peers.
In comparison, Rail Vikas has a PE ratio of 60.82 and an EV to EBITDA of 74.26, while Ircon International, considered attractive, has a PE of 24.64 and an EV to EBITDA of 19.6. Kalyani Cast-Tec's valuation appears inflated relative to these peers. Additionally, the company's recent stock performance has outpaced the Sensex, with a year-to-date return of 31.8% compared to the Sensex's 4.58%, which may further contribute to the perception of overvaluation.