Is Kalyani Forge overvalued or undervalued?

As of 18 September 2025, Kalyani Forge's valuation grade has moved from attractive to fair, indicating a shift in its market perception. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 27.02, an EV to EBITDA of 12.33, and a PEG ratio of 0.19, which suggests that while the company is not undervalued, it does not present a compelling investment opportunity at this time.
In comparison to its peers, Kalyani Forge's PE ratio is significantly lower than Bharat Forge's 59.12 and Sona BLW Precision's 45.28, both of which are considered very expensive. Additionally, CIE Automotive, which is rated attractive, has a PE ratio of 21, further highlighting Kalyani Forge's relatively high valuation within the industry. Despite recent stock performance showing a 32.96% return over the past year, which outpaces the Sensex's 0.08%, the current valuation suggests that Kalyani Forge is fairly priced in the market.