Kranti Industries Valuation Shift Signals Change in Price Attractiveness

Nov 19 2025 08:01 AM IST

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Kranti Industries, a key player in the Auto Components & Equipments sector, has undergone a notable adjustment in its valuation parameters, reflecting a shift in price attractiveness. The company’s price-to-earnings (P/E) ratio currently stands at 122.63, while its price-to-book value (P/BV) is 2.52, marking a transition from an expensive to a fair valuation grade. This change invites a closer examination of how Kranti Industries compares with its peers and historical benchmarks within the industry.

Kranti Industries’ market capitalisation grade remains modest at 4, with a day change of 1.16%. The stock price closed at ₹85.53, slightly above the previous close of ₹84.55, trading within a daily range of ₹84.00 to ₹88.00. Over the past 52 weeks, the stock has fluctuated between ₹61.11 and ₹119.79, indicating a wide trading band. When compared to the broader market, Kranti Industries’ returns show mixed performance: a 1.22% gain over the past week against the Sensex’s 0.96%, but a year-to-date return of -14.39% contrasting with the Sensex’s 8.36% rise.

Examining valuation metrics in detail, Kranti Industries’ P/E ratio of 122.63 is significantly higher than several peers in the Auto Components & Equipments sector. For instance, Rico Auto Industries and Alicon Castalloy present P/E ratios of 34.77 and 41.69 respectively, both classified as attractive valuations. The Hi-Tech Gear’s P/E ratio is 50.66, also rated fair, while Bharat Seats stands at 29.63. This disparity highlights the premium valuation attached to Kranti Industries relative to its sector counterparts.

Other valuation multiples such as EV to EBITDA at 14.04 and EV to Capital Employed at 1.74 further contextualise the company’s financial standing. The EV to EBITDA multiple aligns closely with The Hi-Tech Gear’s 14.06, while it is lower than RACL Geartech’s 17.57, which is considered expensive. The PEG ratio of 0.79 for Kranti Industries suggests a valuation that factors in earnings growth, contrasting with higher PEG ratios seen in some peers like Rico Auto Industries at 2.51.

Operational returns provide additional insight into the company’s efficiency. Kranti Industries reports a return on capital employed (ROCE) of 4.32% and a return on equity (ROE) of 2.05%, figures that are modest within the sector context. These metrics may influence investor perception of value, especially when juxtaposed with valuation multiples.

Looking at longer-term returns, Kranti Industries has delivered a 35.18% return over the past year, outperforming the Sensex’s 9.48% during the same period. However, over three years, the stock’s 3.05% return trails the Sensex’s 37.31%, and over five years, the stock’s 470.2% return notably exceeds the Sensex’s 91.65%. These figures illustrate a complex performance trajectory that investors may weigh alongside valuation changes.

In summary, the adjustment in Kranti Industries’ valuation grade from expensive to fair reflects a recalibration of price attractiveness amid a backdrop of high P/E and P/BV ratios relative to peers. While the company’s operational returns remain modest, its long-term stock performance has shown periods of significant gains. Investors analysing Kranti Industries should consider these valuation shifts in conjunction with sector comparisons and broader market trends to form a comprehensive view of the stock’s current standing.

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