Is Atul Auto overvalued or undervalued?

As of 12 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 61.14, an EV to EBITDA of 27.00, and a PEG Ratio of 0.43, which suggests that while growth prospects may be favorable, the current price reflects high expectations.
In comparison to its peers, Atul Auto's valuation stands out against Bajaj Auto, which has a PE of 32.66, and Eicher Motors, with a PE of 30.79, both of which are considered expensive. Despite the recent underperformance of Atul Auto's stock, which has declined by 17.98% year-to-date compared to a 4.55% gain in the Sensex, its historical performance over three and five years shows significant growth, reinforcing its potential despite current valuation concerns.