Is Kalyani Steels overvalued or undervalued?

As of 6 November 2025, Kalyani Steels has moved from a fair to an attractive valuation grade. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 13.73, an EV to EBITDA of 8.01, and a Price to Book Value of 0.18, which indicate a strong position relative to its earnings and asset valuation.
In comparison to its peers, Kalyani Steels stands out with a more favorable valuation than JSW Steel, which has a PE ratio of 46.66, and Tata Steel, with a PE of 45.59. The attractive valuation is further supported by a relatively low EV to Sales ratio of 1.53, suggesting that the market may not fully recognize the company's potential. Despite recent stock performance lagging behind the Sensex, particularly with a year-to-date return of -30.57% compared to the Sensex's 6.62%, the long-term outlook remains promising with a 3-year return of 172.51%.