Is Pelatro overvalued or undervalued?

As of 26 August 2025, Pelatro's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 35.65, an EV to EBITDA ratio of 26.36, and a ROCE of 15.16%. In comparison to its peers, TCS has a more attractive PE ratio of 23.18, while Infosys maintains a fair valuation with a PE of 23.31.
Despite the fair valuation, Pelatro's high valuation ratios suggest that it may be on the higher end compared to its industry peers. The company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -20.3% compared to the Sensex's 4.51%, further reinforcing the notion that Pelatro may not be positioned for significant growth in the near term.