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 market value. The company is currently overvalued based on its high valuation metrics. The PE ratio stands at 46.36, the Price to Book Value is 6.78, and the EV to EBITDA ratio is 26.84, all of which are considerably elevated compared to industry norms.
In comparison to its peers, Kennametal India’s PE ratio is lower than that of Tube Investments at 91.93 and Craftsman Auto at 69.35, but higher than AIA Engineering at 27.75. The PEG ratio of 46.36 also suggests that the stock is priced at a premium relative to its growth expectations. While the company has shown strong returns over the past five years at 205.30%, its year-to-date performance of -22.29% contrasts sharply with the Sensex's 6.50% gain, reinforcing the notion that the stock may be overvalued in the current market context.