Is Kalyani Forge overvalued or undervalued?

As of 9 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, with a PE ratio of 27.65, an EV to EBITDA of 12.55, and a PEG ratio of 0.19, which suggests that while the stock is not undervalued, it also does not appear to be significantly overvalued at this time.
In comparison to its peers, Bharat Forge has a much higher PE ratio of 55.33, while Ramkrishna Forgings stands at 29.45, both indicating that Kalyani Forge is relatively more attractively priced within the industry. Additionally, Kalyani Forge has outperformed the Sensex over the past year, with a stock return of 36.07% compared to the Sensex's -0.56%, reinforcing its competitive position in the market despite the recent downgrade in valuation grade.