Is Atul Auto overvalued or undervalued?

As of 15 September 2025, Atul Auto's valuation grade has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE Ratio of 61.69, an EV to EBITDA of 27.85, and a PEG Ratio of 3.04, which suggest that while the company has a high valuation relative to earnings, its growth prospects may justify this premium.
In comparison to peers, Atul Auto's PE Ratio is significantly higher than Bajaj Auto's 33.22 and Hero MotoCorp's 20.99, which are categorized as attractive. However, it is also important to note that TVS Motor Co. is priced at a PE of 69.61, indicating a more expensive valuation. Recent stock performance shows that Atul Auto has underperformed the Sensex over the past year, with a return of -22.78% compared to the Sensex's -1.33%. This underperformance, alongside its attractive valuation grade, reinforces the view that Atul Auto may present a buying opportunity for investors.