Is Stove Kraft overvalued or undervalued?

As of 17 September 2025, the valuation grade for Stove Kraft has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 56.89, an EV to EBITDA of 16.06, and a ROCE of 11.93%. In comparison to its peers, Metro Brands is deemed very expensive with a PE of 100.43, while V-Guard Industries is attractive with a PE of 56.29.
Despite the fair valuation, Stove Kraft's stock has underperformed relative to the Sensex, particularly over the past year, where it has declined by 23.92% compared to a slight drop of 0.46% in the Sensex. This underperformance may suggest that the market is currently pricing in challenges that the company faces, despite its fair valuation metrics.