Is Kirl. Brothers overvalued or undervalued?

As of 27 June 2025, Kirl. Brothers has moved from an expensive to a very expensive valuation grade. The company is currently overvalued based on its financial metrics. Key ratios include a PE ratio of 43.93, an EV to EBITDA of 29.51, and a Price to Book Value of 8.84, which are significantly higher than industry norms.
In comparison to its peers, Kirl. Brothers' PE ratio is lower than Elgi Equipments at 48.61 and KSB at 55.87, but still indicates a high valuation relative to the market. The company's return on capital employed (ROCE) stands at an impressive 33.01%, yet the elevated valuation metrics suggest that the stock may not be a prudent investment at its current price of 2,329.50. Notably, Kirl. Brothers has outperformed the Sensex in recent periods, with a year-to-date return of 12.54% compared to the Sensex's 7.58%.