Is Atul Auto overvalued or undervalued?

As of 16 June 2025, Atul Auto's valuation grade has moved from fair to attractive, indicating a more favorable outlook. The company appears to be undervalued, especially when considering its PE ratio of 59.02, which is significantly higher than peers like Bajaj Auto at 32.57 and Eicher Motors at 31.05. Additionally, Atul Auto's EV to EBITDA stands at 26.13, while its PEG ratio is a compelling 0.42, suggesting potential for growth relative to its price.
In comparison to its peers, Atul Auto's financial metrics highlight its attractiveness despite the high PE ratio. While Bajaj Auto and Eicher Motors are categorized as expensive, Atul Auto's valuation reflects a more favorable investment opportunity. Notably, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -20.83% compared to the Sensex's 4.68%, which may further support its undervaluation narrative.