Is KCP overvalued or undervalued?

As of 14 November 2025, KCP's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 14.91, an EV to EBITDA of 6.28, and a Price to Book Value of 1.49. In comparison to its peers, KCP's PE ratio is significantly lower than UltraTech Cement's 47.72 and Grasim Industries' 43.32, both of which are considered very expensive.
Despite the fair valuation, KCP has shown underperformance relative to the Sensex, with a year-to-date stock return of -18.35% compared to the Sensex's 8.22%. This underperformance, coupled with a ROCE of 18.95% and a ROE of 10.00%, suggests that while KCP is not overvalued, it may face challenges in enhancing shareholder returns in the near term.