Is K.P. Energy overvalued or undervalued?

As of 10 October 2025, K.P. Energy's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics, with a PE ratio of 23.17, an EV to EBITDA of 15.04, and a PEG ratio of 0.23. These ratios suggest that while the company has strong profitability indicators, its valuation is more aligned with its peers rather than being a standout opportunity.
In comparison to peers, K.P. Energy's valuation appears reasonable, especially when contrasted with Rail Vikas, which is considered expensive with a PE ratio of 59.85, and Ircon International, which is fairly valued at a PE of 24.87. Despite a recent downturn in stock performance year-to-date, where K.P. Energy has seen a decline of 21.27% compared to a 5.58% increase in the Sensex, its long-term performance remains impressive with a 527.35% return over three years. This suggests that while the current valuation is fair, the company may still have potential for future growth.