Is Pelatro overvalued or undervalued?

As of 12 September 2025, Pelatro's valuation grade has moved from fair to attractive, indicating a more favorable assessment of its market position. The company appears to be undervalued, particularly when considering its current PE ratio of 35.92, an EV to EBITDA of 26.56, and a PEG ratio of 0.00, which suggests strong growth potential relative to its price. In comparison to its peers, Pelatro's PE ratio is significantly higher than TCS at 23.01 and Infosys at 23.24, but it also reflects a more attractive valuation than LTI Mindtree, which is priced at 33.5. Additionally, Pelatro's ROCE stands at 15.16% and ROE at 14.36%, showcasing solid returns on capital and equity. Despite a recent decline in stock performance relative to the Sensex, with a year-to-date return of -20.4% compared to the Sensex's 6.21%, the overall valuation metrics suggest that Pelatro is positioned for potential upside.