Is Kranti Industrie overvalued or undervalued?

As of 22 August 2025, the valuation grade for Kranti Industrie has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently deemed overvalued based on several key financial ratios, including a PE ratio of -115.60, an EV to EBIT of 142.68, and an EV to EBITDA of 19.66. These figures suggest that the company's earnings performance is significantly underwhelming, particularly with a negative return on equity (ROE) of -4.92% and a return on capital employed (ROCE) of -1.34%.
In comparison to its peers, Kranti Industrie stands out unfavorably; for instance, Bosch has a PE ratio of 52.34 and an EV to EBITDA of 47.30, while Samvardh. Mothe. boasts a more attractive PE of 29.41 and an EV to EBITDA of 10.88. This stark contrast highlights Kranti's relative overvaluation in the auto components sector. Despite recent stock performance showing a 21.84% return over the past year, which outperformed the Sensex's 0.31%, the underlying financial metrics suggest that the stock is not justified at its current price of 90.59.