Is Kirl. Brothers overvalued or undervalued?

As of 8 July 2025, Kirl. Brothers has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued based on its financial ratios. The PE ratio stands at 41.38, while the EV to EBITDA ratio is 27.75, and the PEG ratio is 1.83, indicating that the stock may be priced too high relative to its earnings growth potential.
In comparison to its peers, Kirl. Brothers has a lower PE ratio than Elgi Equipments at 48.35 and KSB at 56.5, both of which are categorized as very expensive. However, the high EV to EBITDA ratio of Kirl. Brothers suggests that it is still trading at a premium compared to the industry. Notably, the company's stock has underperformed the Sensex over the past year, with a return of -15.88% compared to the Sensex's 4.69%, reinforcing the notion that it may be overvalued at its current price of 2,195.55.