Is KCP Sugar &Inds. overvalued or undervalued?

Jun 09 2025 03:44 PM IST
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As of May 29, 2025, KCP Sugar & Inds. is considered very expensive and overvalued with a PE ratio of 38.11 and an EV to EBITDA of 32.90, significantly higher than its peers, while also underperforming with a year-to-date return of -17.11% compared to the Sensex's gain of 5.63%.
As of 29 May 2025, the valuation grade for KCP Sugar & Inds. has moved from risky to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of 38.11, an EV to EBITDA of 32.90, and a ROE of only 2.43%. In comparison, EID Parry, another peer in the sugar industry, has a PE ratio of 27.55 and an EV to EBITDA of 5.63, while Balrampur Chini shows a PE of 28.14 and an EV to EBITDA of 21.19, both suggesting that KCP Sugar & Inds. is trading at a premium relative to its peers.

Additionally, the company's recent stock performance has been underwhelming, with a year-to-date return of -17.11%, contrasting sharply with the Sensex's gain of 5.63% over the same period. This further reinforces the notion that KCP Sugar & Inds. is currently overvalued, as its financial metrics do not justify its high valuation compared to both its peers and the broader market performance.
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