Is KKV Agro Powers overvalued or undervalued?

As of 4 June 2025, KKV Agro Powers has moved from a fair valuation to an expensive rating. The company is currently overvalued based on its financial metrics. Key ratios include a PE Ratio of 18.42, an EV to EBITDA of 7.47, and a ROE of 7.96%. In comparison to its peers, NTPC Ltd. stands out with a more attractive PE Ratio of 13.78 and an EV to EBITDA of 10.37, while Adani Power Ltd. has a PE of 16.55 and an EV to EBITDA of 11.57, both indicating that KKV Agro Powers is priced higher relative to its competitors.
The recent performance of KKV Agro Powers has been underwhelming, with a year-to-date return of -30.34%, significantly lagging behind the Sensex's 6.25% gain. This further reinforces the conclusion that the stock is overvalued, as it struggles to deliver returns in a growing market.