Is KKV Agro Powers overvalued or undervalued?

As of 27 June 2025, KKV Agro Powers has moved from an expensive to a very expensive valuation grade. The company is currently overvalued, with a PE ratio of 22.34, an EV to EBITDA of 8.74, and a PEG ratio of 0.04. In comparison, peers such as NTPC, which is rated very attractive, has a PE of 13.99 and an EV to EBITDA of 10.47, while Power Grid Corporation, also very expensive, has a PE of 17.95 and an EV to EBITDA of 10.23, highlighting KKV Agro Powers' relatively high valuation metrics.
Despite a recent stock return of 21.31% over the past week, which outperformed the Sensex's 2.09%, the longer-term performance shows a decline of 40.49% over the past year compared to the Sensex's 6.63% increase. This suggests that while there may be short-term gains, the overall valuation remains unsustainable in the context of its peers and historical performance.