Is K&R Rail Engine. overvalued or undervalued?

Jun 09 2025 04:23 PM IST
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As of April 8, 2025, K&R Rail Engine is considered an attractive investment opportunity with a PE ratio of 21.90 and strong financial metrics, despite a year-to-date stock decline of 80.66%, indicating it is undervalued compared to peers like Larsen & Toubro and Siemens.
As of 8 April 2025, K&R Rail Engine has moved from a fair to attractive valuation grade, indicating a positive shift in its perceived value. The company is currently considered undervalued, with a PE ratio of 21.90, an EV to EBITDA of 11.38, and a ROCE of 22.45%. In comparison, peers such as Larsen & Toubro Ltd. have a significantly higher PE ratio of 34.21, while Siemens Ltd. is marked as very expensive with a PE of 56.88.

Despite recent stock performance showing a decline of 80.66% year-to-date compared to a 5.58% gain in the Sensex, K&R Rail Engine's strong ratios suggest it is positioned well within its industry. The attractive valuation, coupled with a PEG ratio of 0.00, indicates potential for growth relative to its earnings. Overall, K&R Rail Engine appears to be a compelling investment opportunity in the current market landscape.
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