Is KMC Speciality overvalued or undervalued?

As of 12 November 2025, KMC Speciality's valuation grade has moved from attractive to fair, indicating a shift in its perceived market value. The company appears to be fairly valued at this time, with a PE ratio of 54.51, an EV to EBITDA ratio of 22.49, and a ROE of 14.27%. In comparison to its peers, Apollo Hospitals is rated attractive with a higher PE of 64.52, while Narayana Hrudaya is considered expensive with a PE of 45.49.
Despite the fair valuation, KMC Speciality's high PE ratio suggests that investors are paying a premium for its earnings relative to its peers. The stock has shown a strong performance over the past five years, with a return of 302.98%, significantly outpacing the Sensex's 94.82% return in the same period. This long-term growth may support the current valuation, but the recent downgrade in the grade suggests caution moving forward.