Is KP Green Engg. overvalued or undervalued?

As of 1 October 2025, the valuation grade for KP Green Engineering has moved from expensive to very expensive. This indicates that the company is currently overvalued. The PE ratio stands at 35.06, while the Price to Book Value is 8.01, and the EV to EBITDA ratio is 24.77. These ratios suggest that the company's valuation is significantly higher than its earnings and asset values.
In comparison to peers, KP Green Engineering's PE ratio is notably higher than that of Tata Steel, which has a PE of 43.09 and is rated as attractive, and Jindal Steel, which is rated fair with a PE of 25.83. Additionally, the PEG ratio of 0.32 indicates that the stock may be overvalued relative to its growth expectations. The recent stock performance has also been underwhelming, with a year-to-date return of -7.39%, contrasting with a positive 3.64% return for the Sensex during the same period, reinforcing the overvaluation narrative.