Is Kalyani Cast-Tec overvalued or undervalued?

As of 10 October 2025, Kalyani Cast-Tec's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company appears to be fairly valued based on its current metrics, with a PE ratio of 28.05, an EV to EBITDA of 19.26, and a PEG ratio of 0.58. These figures suggest that the stock is reasonably priced relative to its earnings growth potential.
In comparison with peers, Kalyani Cast-Tec's valuation stands out against Rail Vikas, which is deemed expensive with a PE ratio of 59.85, and Ircon International, which is also fair with a PE of 24.87. The company's strong ROCE of 43.05% and ROE of 22.04% further support the conclusion that it is fairly valued. Notably, while Kalyani Cast-Tec has underperformed the Sensex in the short term, its year-to-date return of 24.17% significantly outpaces the Sensex's 5.58%, reinforcing its potential as a solid investment in the industrial manufacturing sector.