Is Sri KPR Inds. overvalued or undervalued?

As of 6 October 2025, the valuation grade for Sri KPR Industries has moved from expensive to very expensive, indicating a significant shift in its market positioning. The company is currently considered overvalued. Key ratios include a PE ratio of 18.27, an EV to EBITDA of 2.32, and a ROE of 2.20%. These figures suggest that despite a relatively low EV to Sales ratio of 0.71, the overall valuation metrics do not support the current price level.
In comparison to peers, Sri KPR Inds. has a lower PE ratio than Supreme Industries, which stands at 59.59, and Astral, which is at 77.18, both of which are also categorized as very expensive. However, the valuation of Sri KPR Inds. appears excessive given its low return metrics, including a ROCE of just 0.69%. Additionally, the company's stock has underperformed against the Sensex, with a year-to-date return of -25.02% compared to the Sensex's 4.67%, reinforcing the notion that the stock is overvalued at its current price.