Is K.P. Energy overvalued or undervalued?

As of 10 October 2025, K.P. Energy's valuation grade has moved from attractive to fair. The company is currently fairly valued, with a PE ratio of 23.17, an EV to EBITDA of 15.04, and a PEG ratio of 0.23. In comparison, peer companies such as Ircon International have a PE ratio of 24.87 and an EV to EBITDA of 19.79, while Rail Vikas is considered expensive with a PE ratio of 59.85.
Despite the recent grade change, K.P. Energy has demonstrated strong performance metrics, including a ROCE of 31.50% and a ROE of 36.83%. While the stock has underperformed the Sensex year-to-date with a decline of 21.27% compared to the Sensex's gain of 5.58%, its long-term performance over three years shows an impressive return of 527.35%, suggesting potential for recovery and growth in the future.