Is Kanchi Karpooram overvalued or undervalued?

As of 7 November 2025, Kanchi Karpooram's valuation grade has moved from very attractive to attractive, indicating a shift in market perception. The company is currently assessed as undervalued, with a price-to-earnings (PE) ratio of 15.70, a price-to-book value of 0.79, and an EV to EBITDA ratio of 8.29. In comparison to peers, Kanchi Karpooram's valuation metrics stand out, particularly against Solar Industries, which has a PE ratio of 97.45, and Gujarat Fluoroch, with a PE ratio of 63.86, both categorized as very expensive.
Despite the recent decline in stock performance, with a year-to-date return of -28.33% compared to the Sensex's 6.50%, Kanchi Karpooram's PEG ratio of 0.36 suggests that it is still a compelling investment opportunity relative to its earnings growth potential. The company's return on capital employed (ROCE) is 9.05%, and return on equity (ROE) is 6.51%, further supporting the notion that it is undervalued in the current market landscape.