Is KMC Speciality overvalued or undervalued?

As of 28 May 2025, KMC Speciality has moved from a fair to an attractive valuation grade. The company appears to be undervalued, given its strong performance metrics relative to its peers. Key ratios include a PE ratio of 51.05, an EV to EBITDA of 20.63, and a ROCE of 15.52%. In comparison, Apollo Hospitals, another attractive peer, has a PE ratio of 69.03 and an EV to EBITDA of 34.71, while Max Healthcare is classified as very expensive with a PE of 100.29.
Despite the recent stock performance lagging behind the Sensex, with a year-to-date return of -11.63% compared to the Sensex's 5.59%, KMC Speciality's valuation metrics suggest it is positioned favorably within the hospital industry. The company's PEG ratio of 0.00 further indicates potential for growth, reinforcing the view that it is currently undervalued.