Is Krypton Industri overvalued or undervalued?

As of 12 September 2025, the valuation grade for Krypton Industri has moved from attractive to very attractive, indicating a significant positive shift in its perceived value. The company is currently considered overvalued, primarily due to its high PE ratio of 78.63, which stands in stark contrast to peers like MRF with a PE of 34.63 and Apollo Tyres at 28.86. Additionally, Krypton’s EV to EBITDA ratio of 18.45 further underscores its premium valuation compared to the industry average.
In terms of financial performance, Krypton boasts a dividend yield of 3.74% and a ROCE of 7.45%, but its ROE of 0.42% raises concerns about profitability relative to equity. The PEG ratio of 0.00 suggests that the company may not be growing at a pace that justifies its current valuation. Despite recent stock performance showing a 4.84% return over the past week compared to a 1.48% return of the Sensex, the overall trend indicates that Krypton is overvalued in the current market context.