Is KKV Agro Powers overvalued or undervalued?

As of 10 October 2025, KKV Agro Powers has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 21.88, an EV to EBITDA of 8.62, and a PEG ratio of 0.04, which suggests that while the company is generating earnings, its growth potential is not reflected in its current valuation.
In comparison to its peers, KKV Agro Powers' PE ratio is higher than NTPC, which has a PE of 13.74 and is rated attractive, indicating that KKV may not justify its premium valuation. Additionally, while Adani Power is rated very expensive with a PE of 23.24, KKV's valuation still appears excessive given its lower growth prospects. The recent stock performance shows a year-to-date decline of 20.03%, contrasting with the Sensex's gain of 6.94%, further supporting the conclusion that KKV Agro Powers is overvalued in the current market context.