Is Kaynes Tech overvalued or undervalued?

As of 5 January 2023, the valuation grade for Kaynes Tech has moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, as evidenced by its high PE ratio of 125.17, an EV to EBITDA ratio of 89.08, and a PEG ratio of 2.10. These figures suggest that the stock price is not justified by its earnings growth potential.
In comparison to its peers, Kaynes Tech's valuation metrics stand out unfavorably. For instance, Honeywell Automation India Ltd. has a PE ratio of 65.93 and an EV to EBITDA of 54.27, while Genus Power Infrastructures Ltd. shows a PE of 38.52 and an EV to EBITDA of 28.56. These comparisons further reinforce the notion that Kaynes Tech is trading at a premium relative to its industry peers. Additionally, the company's recent stock performance has been underwhelming, with a year-to-date return of -23.45%, contrasting sharply with the Sensex's gain of 5.56% during the same period.