Is Kirl. Brothers overvalued or undervalued?

As of 10 July 2025, Kirl. Brothers' valuation grade has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued, with a PE ratio of 42.84, a Price to Book Value of 8.62, and an EV to EBITDA ratio of 28.76. These metrics suggest that the stock is trading at a premium compared to its earnings and assets.
In comparison to its peers, Kirl. Brothers has a lower PE ratio than Elgi Equipments (50.36) and KSB (57.58), but still remains in the very expensive category. The PEG ratio of 1.90 also highlights that the stock may not be justified at its current price given its growth prospects. Notably, while the stock has outperformed the Sensex over the past three years with a return of 596.86% compared to the Sensex's 52.69%, the recent valuation metrics suggest caution for potential investors.