Is Kalyani Forge overvalued or undervalued?

As of 14 November 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 supporting this assessment include a PE ratio of 33.56, an EV to EBITDA ratio of 13.77, and a PEG ratio of 1.94, which suggest that the stock is priced reasonably compared to its growth prospects.
In comparison to its peers, Kalyani Forge stands out with a more favorable valuation than Bharat Forge, which has a PE ratio of 61.68, and Sona BLW Precision, which is considered very expensive with a PE of 48.16. Additionally, CIE Automotive, another attractive peer, has a significantly lower PE of 20.34, reinforcing Kalyani Forge's competitive positioning in the market. Notably, Kalyani Forge has outperformed the Sensex over the past year, with a return of 38.61% compared to the Sensex's 9.00%, further supporting the notion that it is undervalued relative to its growth potential.