Is Kiri Industries overvalued or undervalued?

As of 13 February 2023, the valuation grade for Kiri Industries has moved from attractive to risky, indicating a shift in market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 13.72, an EV to EBITDA of -112.60, and a PEG ratio of 0.21, which suggest that despite a low PE ratio, the negative EV to EBITDA raises concerns about profitability and valuation sustainability.
In comparison to peers, Kiri Industries' valuation appears unfavorable, particularly against Sudarshan Chemicals, which has a PE ratio of 71.32, and Ultramarine Pigments, with a PE of 20.04. The significant disparity in valuation metrics highlights Kiri's risk profile within the industry. Additionally, while Kiri Industries has outperformed the Sensex over the past year with a return of 97.36% compared to the Sensex's 7.58%, its recent performance has lagged behind the index in shorter time frames, further emphasizing the need for caution in its valuation assessment.