Is KP Green Engg. overvalued or undervalued?

As of 19 September 2025, the valuation grade for KP Green Engineering has moved from very expensive to expensive. The company is currently considered overvalued based on its financial ratios. Key metrics include a PE ratio of 37.59, an EV to EBITDA ratio of 24.61, and a PEG ratio of 0.34, which indicates that while the company has strong growth potential, its current price may not be justified by its earnings growth.
In comparison to its peers, KP Green Engineering's PE ratio is significantly higher than that of Tata Steel, which has a PE ratio of 44.17 and is rated as attractive, and Jindal Steel with a PE ratio of 25.46 rated as fair. This suggests that KP Green Engineering is trading at a premium relative to its peers despite its expensive valuation. Additionally, the company's recent stock performance has been mixed, with a 1-year return of 24.99%, outperforming the Sensex's -0.67% return, but it has underperformed in the year-to-date comparison.