Is Atul Auto overvalued or undervalued?

As of 16 September 2025, Atul Auto's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued at this time. Key ratios include a PE ratio of 63.14, an EV to EBITDA ratio of 28.46, and a ROCE of 6.46%.
In comparison to its peers, Atul Auto's PE ratio is significantly higher than Bajaj Auto's 33.43 and Hero MotoCorp's 21.13, both of which are considered attractive. Additionally, while Atul Auto has a PEG ratio of 3.12, Bajaj Auto's is notably lower at 0.00, suggesting that Atul Auto may be overvalued relative to its growth prospects. Despite a recent strong performance with a 1-month return of 24.47% compared to the Sensex's 2.21%, the overall valuation metrics suggest that Atul Auto is fairly valued in the current market context.