Is Kovai Medical overvalued or undervalued?

As of 31 October 2025, Kovai Medical's valuation grade has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently assessed as undervalued. Key ratios supporting this conclusion include a PE ratio of 31.77, an EV to EBITDA of 17.55, and a ROE of 20.29%. When compared to peers, Kovai Medical's valuation appears favorable; for instance, Apollo Hospitals has a significantly higher PE ratio of 70.17, while Max Healthcare is at an exorbitant 92.62. Despite a recent decline in stock price, Kovai Medical has outperformed the Sensex over the past year, with a return of 17.24% compared to the Sensex's 5.73%. This performance, alongside its attractive valuation metrics, reinforces the view that Kovai Medical is undervalued in the current market.