Is Kundan Edifice overvalued or undervalued?

As of 26 May 2025, Kundan Edifice's valuation grade has moved from does not qualify to very expensive, indicating a significant shift in its perceived market value. The company is currently assessed as overvalued. Key ratios include a PE Ratio of 16.72, an EV to EBITDA of 9.49, and a ROCE of 28.26%, which, while strong, do not justify the high valuation in comparison to peers.
In the peer comparison, Kundan Edifice's PE Ratio of 16.72 is notably lower than ABB India Ltd.'s staggering 67.88 and Bharat Heavy Electricals Ltd.'s 166.73, both categorized as very expensive. However, it is worth noting that Apar Industries Ltd. is rated fair with a PE Ratio of 39.79, suggesting that Kundan Edifice's valuation is not supported by its performance relative to its peers. Additionally, the company's recent stock performance has underperformed against the Sensex, with a year-to-date return of -16.06% compared to the Sensex's 6.23%, further reinforcing the view that it is overvalued.