Is KCL Infra overvalued or undervalued?

As of 8 August 2025, KCL Infra's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company remains overvalued based on its current metrics. The PE ratio stands at 22.63, while the EV to EBITDA ratio is notably negative at -14.72, and the ROE is a mere 0.95%. These figures suggest that the company is struggling to generate adequate returns relative to its equity.
In comparison to its peers, KCL Infra's valuation appears less favorable. For instance, Adani Enterprises has a significantly higher PE ratio of 73.84, while Tata Chemicals, deemed attractive, has a PE of 54.25. This positions KCL Infra as overvalued within its industry, especially given its negative EV to EBIT and EV to EBITDA ratios, which indicate operational challenges. Additionally, KCL Infra has underperformed against the Sensex over various time frames, particularly in the last three years, where it has declined by 45.53% compared to the Sensex's gain of 35.69%.