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 perceived value. The company is currently overvalued based on its high valuation multiples, including a PE Ratio of 46.36, an EV to EBIT of 35.94, and an EV to EBITDA of 26.84. These ratios suggest that the stock is trading at a premium compared to its earnings and cash flows.
In comparison to its peers, Kennametal India stands out with a PE Ratio of 46.36, while Rail Vikas, another peer, has a PE of 55.79, and AIA Engineering has a PE of 27.75. However, the overall high valuation multiples across the board indicate that Kennametal India is not justified in its current pricing. The stock has underperformed relative to the Sensex over the past year, with a return of -26.81% compared to the Sensex's 4.62%, further reinforcing the notion that it is overvalued at this time.