Is KKV Agro Powers overvalued or undervalued?

As of 7 August 2025, KKV Agro Powers has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 23.42, an EV to EBITDA of 9.09, and a ROCE of 11.82%. When compared to peers, NTPC, which is rated attractive, has a PE ratio of 13.36 and an EV to EBITDA of 10.60, while Tata Power Co. has a PE of 29.82 and an EV to EBITDA of 12.11.
The valuation metrics suggest that KKV Agro Powers is trading at a premium relative to its peers, indicating potential overvaluation. Additionally, the company's stock has underperformed the Sensex over various periods, including a year-to-date decline of 15.26% compared to a 4.02% gain in the Sensex, reinforcing the notion of overvaluation.