Is Krypton Industri overvalued or undervalued?

As of 22 September 2025, the valuation grade for Krypton Industri has moved from very attractive to attractive, indicating a shift in its perceived value. The company appears to be overvalued based on its current metrics, particularly with a PE ratio of 79.06, which is significantly higher than its peers, such as MRF with a PE of 35.89 and Apollo Tyres at 29.40. Additionally, the EV to EBITDA ratio stands at 18.53, further emphasizing the premium at which Krypton is trading compared to the industry average.
Krypton Industri's financial ratios, including a Price to Book Value of 2.57 and a ROE of only 0.42%, suggest that investors are paying a high price for relatively low returns. The PEG ratio of 0.00 indicates no growth expectations priced into the stock, which is concerning given its current valuation. While the company has outperformed the Sensex over a longer horizon, with a 5-year return of 528.00% compared to the Sensex's 117.73%, the recent performance shows a decline, with a YTD return of -30.21% versus the Sensex's 5.15%. This combination of high valuation ratios and recent underperformance reinforces the conclusion that Krypton Industri is overvalued.