Is Atul Auto overvalued or undervalued?

As of 12 September 2025, Atul Auto'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 62.18, an EV to EBITDA of 28.05, and a PEG ratio of 3.07. These ratios suggest that while the company has strong growth potential, its current pricing may not fully reflect that potential when compared to its peers.
In comparison, Bajaj Auto has a PE ratio of 33.14 and an EV to EBITDA of 22.30, indicating it is relatively less expensive, while Eicher Motors is considered very expensive with a PE of 38.97 and an EV to EBITDA of 39.56. Notably, Atul Auto's recent stock performance has lagged behind the Sensex, particularly over the past year, where it has seen a decline of 21.62% compared to a slight increase in the Sensex. This context reinforces the assessment that Atul Auto is fairly valued amidst a competitive landscape.