Is Patels Airtemp overvalued or undervalued?

As of 8 October 2025, the valuation grade for Patels Airtemp has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued. Key ratios supporting this conclusion include a PE ratio of 13.34, an EV to EBITDA ratio of 8.24, and a Price to Book Value of 1.28, all of which suggest a favorable valuation relative to its earnings and assets.
In comparison to its peers, Patels Airtemp stands out with a significantly lower PE ratio than Rail Vikas, which has a PE of 60.63, and Tube Investments, which has a PE of 93.6. This indicates that Patels Airtemp may offer better value for investors looking at earnings potential. Additionally, while the company has faced challenges with stock performance, particularly a YTD decline of 46.77% compared to a 4.65% gain in the Sensex, its strong valuation metrics suggest it may be a compelling investment opportunity moving forward.