Is Atul Auto overvalued or undervalued?

As of 5 June 2025, Atul Auto's valuation grade has moved from fair to attractive, indicating a more favorable assessment of its market position. The company is currently considered undervalued, with a price-to-earnings (PE) ratio of 61.42, a price-to-book value of 3.01, and an EV to EBITDA ratio of 27.12. These ratios suggest that while the company has a high PE, it is still positioned competitively within its industry.
In comparison to its peers, Atul Auto's PE ratio is significantly higher than Bajaj Auto's 32.93 and Eicher Motors' 31.29, both of which are classified as expensive. Despite this, Atul Auto's PEG ratio of 0.44 indicates that it may offer growth potential relative to its price. Notably, the company has underperformed the Sensex over the past year, with a return of -10.55% compared to the Sensex's 7.61%, but it has shown substantial growth over a three-year period, outperforming the index with a return of 181.52%.