Is Kalyani Forge overvalued or undervalued?

As of 5 September 2025, Kalyani Forge's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 27.85, an EV to EBITDA of 12.63, and a PEG ratio of 0.20, which suggests that the stock may be undervalued relative to its growth prospects.
When compared to peers, Kalyani Forge's PE ratio is significantly lower than Bharat Forge's 53.03 and Sona BLW Precision's 45.27, both of which are considered expensive. In contrast, CIE Automotive, which is rated very attractive, has a PE of 19.04, indicating that Kalyani Forge may still have room for improvement in its valuation. Notably, Kalyani Forge has outperformed the Sensex with a 1-year return of 32.90% compared to the Sensex's decline of 1.81%, reinforcing its competitive position in the market.