Is Pelatro overvalued or undervalued?

As of 12 September 2025, Pelatro's valuation grade has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently assessed as undervalued, especially when considering its key financial ratios. The PE ratio stands at 35.92, while the EV to EBITDA ratio is 26.56, and the ROCE is at a respectable 15.16%.
In comparison to its peers, Pelatro's valuation appears favorable. For instance, TCS has a PE ratio of 23.01 and an EV to EBITDA of 16.22, while Infosys shows a PE of 23.24 and an EV to EBITDA of 15.28. This suggests that Pelatro, despite its higher ratios, may offer growth potential that is not fully reflected in its current price. Recent stock performance shows Pelatro lagging behind the Sensex year-to-date, with a decline of 20.4% compared to the Sensex's gain of 6.21%, reinforcing the notion that the stock may be undervalued relative to its growth prospects.