Is Pelatro overvalued or undervalued?

As of 10 September 2025, Pelatro's valuation grade has moved from attractive to fair, indicating a shift in market perception. The company is currently fairly valued. Key ratios include a PE ratio of 36.36, an EV to EBITDA of 26.88, and a ROCE of 15.16%. In comparison, TCS, which is rated attractive, has a PE ratio of 22.83 and an EV to EBITDA of 16.09, while Infosys, rated fair, shows a PE of 23.35 and an EV to EBITDA of 15.35%.
Despite the recent stock performance showing a 7.38% return over the past week compared to a 1.04% return for the Sensex, Pelatro's year-to-date performance is down by 18.71%, contrasting with the Sensex's gain of 5.62%. This suggests that while Pelatro may have short-term momentum, its overall valuation appears to be aligned with its peers, reinforcing the conclusion that it is fairly valued in the current market context.