Is Pelatro overvalued or undervalued?

As of 30 June 2025, Pelatro's valuation grade has moved from attractive to fair, indicating a shift in its perceived market value. The company is currently fairly valued based on its financial metrics, which include a PE ratio of 38.84, an EV to EBIT of 33.01, and a ROCE of 23.22%.
When compared to its peers, Pelatro's PE ratio is significantly higher than that of TCS at 25.79 and Infosys at 24.9, suggesting that it may be overvalued relative to these competitors. Additionally, the EV to EBITDA ratio of 27.03 is also higher than that of Infosys, which stands at 16.22. While Pelatro has shown strong recent performance with a 1-month return of 26.07% compared to the Sensex's 3.10%, its year-to-date return of -11.59% indicates some volatility in its stock performance. Overall, Pelatro appears to be fairly valued within its competitive landscape.