Is Kranti Industrie overvalued or undervalued?

As of 14 August 2025, the valuation grade for Kranti Industrie has moved from risky to expensive, indicating a shift in perception regarding its financial health. The company is currently overvalued, with a PE ratio of -106.88, an EV to EBITDA of 18.58, and a Price to Book Value of 2.58. These ratios suggest significant concerns about profitability and return on equity, which stands at -4.92%.
When compared to peers, Kranti Industrie’s valuation appears particularly unfavorable; for instance, Bosch has a PE ratio of 51.28 and an EV to EBITDA of 46.33, while Samvardhana Motherson boasts a much more attractive PE of 28.77 and an EV to EBITDA of 10.66. The stark contrast in these ratios highlights Kranti's overvaluation in the current market context. Despite a strong 5-year return of 498.29%, the recent performance relative to the Sensex shows a decline of 16.16% year-to-date, further reinforcing the notion that the stock is not just expensive but may also face challenges ahead.