Is Krishanveer Forg overvalued or undervalued?

As of 19 May 2025, the valuation grade for Krishanveer Forg has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, supported by a PE ratio of 17.63, an EV to EBITDA ratio of 9.96, and a PEG ratio of 0.43, which suggests strong growth potential relative to its price.
In comparison to its peers, Krishanveer Forg's valuation stands out; for instance, Bharat Forge has a significantly higher PE ratio of 59.98, while CIE Automotive, also rated attractive, has a PE ratio of 21.15. Notably, Krishanveer Forg's ROCE of 24.12% and ROE of 13.30% further underscore its efficient capital utilization compared to peers. Despite a recent underperformance against the Sensex over the year, the long-term returns of 289.83% over five years highlight its growth potential, reinforcing the conclusion that the stock is undervalued.