Is Kirl. Brothers overvalued or undervalued?

As of 4 July 2025, Kirl. Brothers has moved from an expensive to a very expensive valuation grade. The company is currently overvalued, with a PE ratio of 44.01, a Price to Book Value of 8.85, and an EV to EBITDA of 29.57. These ratios indicate a significant premium compared to its peers, such as Elgi Equipments with a PE of 48.06 and Ingersoll-Rand with a PE of 47.69, both of which are also classified as very expensive.
Kirl. Brothers' valuation metrics suggest that it is trading at a high multiple relative to its earnings and book value, which raises concerns about sustainability and growth expectations. Despite recent stock performance showing a 31.62% return over the past month compared to a 3.01% return for the Sensex, the overall valuation remains stretched, reinforcing the conclusion that Kirl. Brothers is overvalued in the current market environment.