Is Pelatro overvalued or undervalued?

As of 22 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, particularly in light of its key ratios. Pelatro's PE ratio stands at 36.10, while its EV to EBITDA is 26.69, and the EV to Sales ratio is 5.06. These figures suggest a strong operational performance relative to its market price.
In comparison to its peers, Pelatro's valuation metrics highlight its attractiveness; for instance, TCS has a PE ratio of 22.58 and an EV to EBITDA of 15.91, while Infosys shows a PE of 22.86 and an EV to EBITDA of 15.02. Despite Pelatro's higher ratios, its PEG ratio of 0.00 indicates potential for growth that is not yet reflected in its price. Additionally, while Pelatro has underperformed the Sensex year-to-date with a return of -19.31% compared to the Sensex's 6.59%, its recent grade change suggests that the market may be starting to recognize its value.