Is Kanoria Energy overvalued or undervalued?

As of 11 July 2025, Kanoria Energy's valuation grade has moved from attractive to very attractive, indicating a positive shift in its market perception. The company is currently considered undervalued, with a PE ratio of 53.30, an EV to EBITDA ratio of 16.43, and a Price to Book Value of 2.03. These ratios suggest that while the company has a high earnings multiple, its valuation may not fully reflect its potential given the industry's dynamics.
In comparison to its peers, Kanoria Energy's PE ratio is lower than UltraTech Cement's 58.12 and Grasim Industries' 47.16, which are categorized as very expensive and attractive, respectively. Additionally, Kanoria's EV to EBITDA ratio of 16.43 is more favorable than that of several peers, indicating a better valuation relative to earnings before interest, taxes, depreciation, and amortization. Despite recent underperformance against the Sensex, with a year-to-date return of -34.38% compared to the Sensex's 5.58%, the company's current valuation metrics suggest it is positioned for potential recovery.