Is Atul Auto overvalued or undervalued?

As of 9 June 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 62.87, an EV to EBITDA of 27.72, and a PEG Ratio of 0.45, which suggests that while growth expectations are high, the current valuation may not fully justify the premium.
When compared to peers, Atul Auto's valuation metrics stand out. Bajaj Auto, considered expensive, has a PE of 32.96, while Eicher Motors also trades at a higher PE of 31.15. This indicates that Atul Auto's valuation is significantly higher than its peers, which could suggest overvaluation in the current market context. Additionally, the company's recent stock performance has lagged behind the Sensex, with a YTD return of -15.67% compared to the Sensex's 5.51%, reinforcing the notion that the stock may not be positioned for immediate upside.