Is K.P. Energy overvalued or undervalued?

Nov 09 2025 08:10 AM IST
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As of November 7, 2025, K.P. Energy is considered overvalued with a valuation grade of expensive, reflected in its PE ratio of 21.28 and a current price of 424.65, despite a favorable PEG ratio of 0.29 and a strong three-year return of 560.16%.
As of 7 November 2025, K.P. Energy's valuation grade has moved from fair to expensive, indicating that the company is currently overvalued. The key ratios reflect this assessment, with a PE ratio of 21.28, an EV to EBITDA ratio of 13.37, and a Price to Book Value of 9.07. These figures suggest that the stock is trading at a premium compared to its earnings and book value.

In comparison to its peers, K.P. Energy's PE ratio is significantly lower than that of Rail Vikas at 55.79 and Tube Investments at 91.93, both categorized as expensive. Additionally, the PEG ratio of K.P. Energy stands at 0.29, which is favorable, yet the overall valuation still leans towards being expensive. Notably, while K.P. Energy has seen a strong return of 560.16% over the past three years, it has underperformed the Sensex in the year-to-date and one-year periods, which further supports the view that the stock may be overvalued at its current price of 424.65.
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