Is Krypton Industri overvalued or undervalued?

As of 12 September 2025, Krypton Industri's valuation grade has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company is currently considered overvalued. Key ratios include a PE Ratio of 78.63, an EV to EBITDA of 18.45, and a Price to Book Value of 2.56, which are significantly higher than its peers. For instance, MRF has a PE of 34.63 and an EV to EBITDA of 15.58, while Apollo Tyres shows a PE of 28.86 and an EV to EBITDA of 9.56, highlighting Krypton’s premium valuation relative to these competitors.
Despite its high valuation metrics, Krypton Industri has shown strong returns over the long term, with a 5-year return of 478.38% compared to the Sensex's 110.80%. However, the recent performance indicates a decline, with a year-to-date return of -28.54% against a 4.82% rise in the Sensex. This divergence suggests that while the company may be overvalued at present, its historical performance could be a point of consideration for potential investors.