Is Kalyani Forge overvalued or undervalued?

As of 29 August 2025, Kalyani Forge's valuation grade has moved from fair to attractive, indicating a positive shift in its market perception. The company is currently assessed as undervalued. Key ratios include a PE Ratio of 26.49, an EV to EBITDA of 12.14, and a PEG Ratio of 0.19, which suggests that the stock is priced favorably relative to its earnings growth potential.
In comparison to its peers, Kalyani Forge's PE Ratio is significantly lower than Bharat Forge's 51.54 and Sona BLW Precision's 45.82, while its EV to EBITDA is more competitive than Bharat Forge's 21.67. This positioning, along with a solid ROE of 10.46%, reinforces the attractiveness of Kalyani Forge's valuation. Notably, over the past year, Kalyani Forge has outperformed the Sensex with a return of 31.60% compared to the Sensex's decline of 2.83%, further supporting the case for its undervaluation.