Is KEI Industries overvalued or undervalued?

As of 16 October 2025, the valuation grade for KEI Industries has moved from very expensive to expensive. The company is currently considered overvalued based on its high PE ratio of 50.46, an EV to EBITDA of 24.38, and a PEG ratio of 2.58. In comparison to peers, Polycab India is categorized as very expensive with a PE of 51.46, while Havells India is rated fair with a significantly higher PE of 65.35, indicating that KEI Industries is trading at a premium relative to some of its competitors.
Despite the high valuation metrics, KEI Industries has shown a notable return of 190.21% over the past three years, which outpaces the Sensex's 44.11% return in the same period. However, the recent performance has been lackluster, with a year-to-date decline of 6.07% compared to the Sensex's gain of 6.82%. This suggests that while the company has had strong historical performance, its current valuation may not be justified given the recent trends and peer comparisons.