Is ATC Energies overvalued or undervalued?

As of 18 September 2025, the valuation grade for ATC Energies has moved from fair to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key ratios include a PE ratio of 11.25, an EV to EBITDA of 5.34, and a ROCE of 30.49%, which highlight its strong earnings potential relative to its market price.
In comparison to its peers, ATC Energies stands out with a much lower PE ratio than Exide Industries at 42.59 and HBL Engineering at 69.29, both categorized as very expensive. This reinforces the notion that ATC Energies is undervalued in its sector. Additionally, while the stock has underperformed the Sensex over the past week with a return of -4.56%, its attractive valuation metrics suggest that it may present a compelling investment opportunity moving forward.