Is Kalyani Cast-Tec overvalued or undervalued?

As of 29 September 2025, Kalyani Cast-Tec's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued, with a PE ratio of 30.76, an EV to EBIT of 22.41, and an EV to EBITDA of 21.22. These ratios suggest that the stock is trading at a premium compared to its earnings and cash flow generation capabilities.
In comparison to its peers, Kalyani Cast-Tec's PE ratio is significantly lower than that of Rail Vikas, which stands at 59.78, but higher than Ircon International, which has a PE of 23.85. The PEG ratio of 0.64 indicates potential growth relative to its price, yet the overall valuation metrics suggest that the stock is not justified at its current price level of 610.00. Notably, Kalyani Cast-Tec has outperformed the Sensex with a year-to-date return of 33.99% compared to the Sensex's 2.85%, reinforcing the notion that while the stock has been performing well, it may be priced too high relative to its fundamentals.