Is KM Sugar Mills overvalued or undervalued?

As of 12 February 2025, KM Sugar Mills has moved from an attractive to a very attractive valuation grade. The company is currently undervalued, supported by a PE ratio of 7.80, a price-to-book value of 0.82, and an EV to EBITDA ratio of 6.71. Compared to its peers, KM Sugar Mills stands out with a significantly lower PE ratio than EID Parry at 27.55 and Balrampur Chini at 28.14, both of which are classified as expensive.
The valuation metrics indicate that KM Sugar Mills is positioned favorably within the sugar industry, especially when considering its PEG ratio of 0.29, which suggests strong growth potential relative to its price. While the stock has underperformed against the Sensex over the past year, its substantial 5-year return of 277.08% highlights its long-term value proposition.