Is Pelatro overvalued or undervalued?

As of 28 August 2025, Pelatro's valuation grade has moved from fair to attractive, indicating a more favorable assessment of its market position. The company is currently considered undervalued, 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 PE ratio of 22.74 and an EV to EBITDA of 16.03, while Infosys stands at a PE of 22.86 and an EV to EBITDA of 15.01, highlighting Pelatro's relatively higher valuation metrics.
Despite its attractive grade, Pelatro's stock has underperformed in the year-to-date period, showing a decline of 20.3% compared to a 3.62% increase in the Sensex. This divergence suggests that while the company may be undervalued based on its fundamental ratios, market sentiment has not yet fully recognized its potential, presenting a possible opportunity for investors.