Is Stove Kraft overvalued or undervalued?

As of 28 October 2025, Stove Kraft's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 61.07, a Price to Book Value of 5.30, and an EV to EBITDA of 17.16. These ratios suggest that while the company has strong growth potential, its current pricing may not fully justify the high multiples compared to its peers.
In comparison to its industry peers, Stove Kraft's PE ratio is higher than V-Guard Industries, which is at 57.19 and rated as attractive, but lower than Metro Brands, which is considered very expensive at a PE of 87.87. Additionally, the company's ROCE stands at 11.93%, while its ROE is 8.68%, which are respectable figures but indicate room for improvement. Recent stock performance shows that Stove Kraft has outperformed the Sensex over the past week and month, but it has lagged behind in the year-to-date and one-year periods, which may reflect market concerns about its valuation sustainability.