Is Patels Airtemp overvalued or undervalued?

As of 7 August 2025, the valuation grade for Patels Airtemp has moved from attractive to very attractive. The company is currently undervalued, with a PE ratio of 13.22, a Price to Book Value of 1.27, and an EV to EBITDA ratio of 8.20. These metrics suggest that the stock is trading at a lower valuation compared to its earnings and book value, indicating potential upside.
In comparison to its peers, Patels Airtemp's PE ratio is significantly lower than that of Rail Vikas, which is considered expensive at a PE of 56.41, and Tube Investments, which has a PE of 88.11. Additionally, the company's PEG ratio stands at 0.00, suggesting that it may be undervalued relative to its growth prospects. Despite recent stock performance showing a decline of 50.23% over the past year compared to a modest 1.45% increase in the Sensex, the long-term outlook remains promising given its strong ROCE of 12.49% and the favorable valuation metrics.