Is K.P. Energy overvalued or undervalued?

Nov 08 2025 08:09 AM IST
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As of November 7, 2025, K.P. Energy is considered overvalued with a PE ratio of 21.28 and other high valuation metrics, reflecting a premium compared to peers, despite a year-to-date return of -21.22%.
As of 7 November 2025, K.P. Energy's valuation grade has moved from fair to expensive, indicating that the company is overvalued. The current PE ratio stands at 21.28, with a price-to-book value of 9.07 and an EV to EBITDA ratio of 13.37. These figures suggest that the company's valuation metrics are significantly higher than those of its peers, such as Rail Vikas with a PE of 55.79 and AIA Engineering at 27.75, both of which are also classified as expensive.

In comparison to its industry, K.P. Energy's ratios reflect a premium valuation that may not be justified given its recent performance, including a year-to-date return of -21.22%, contrasting with a 6.50% gain in the Sensex. Overall, the analysis concludes that K.P. Energy is overvalued based on its current financial ratios and peer comparisons.
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