Is Kennametal India overvalued or undervalued?

As of 7 November 2025, the valuation grade for Kennametal India has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 46.36, an EV to EBITDA of 26.84, and a Price to Book Value of 6.78, all of which are substantially higher than industry norms.
When compared to peers, Kennametal India's valuation stands out, with Rail Vikas at a PE of 55.79 and Tube Investments at an even higher PE of 91.93, both categorized as very expensive. Despite the strong performance in the short term, with a 1-week return of 10.53% compared to a -0.86% return for the Sensex, the long-term outlook shows a decline of 22.29% year-to-date, which further reinforces the view that the stock is overvalued at its current price of 2305.50.