Is Pratham EPC overvalued or undervalued?

As of 20 June 2025, Pratham EPC's valuation grade has moved from very attractive to attractive, indicating a shift in investor perception. The company is currently assessed as undervalued, with a PE ratio of 20.39, an EV to EBITDA of 15.07, and a PEG ratio of 0.65, suggesting that it may still offer growth potential relative to its price.
In comparison to its peers, Pratham EPC's PE ratio is notably lower than Reliance Industries, which has a PE of 28.46, and significantly higher than ONGC's PE of 8.7. Additionally, Pratham EPC's ROCE stands at an impressive 34.12% and ROE at 22.23%, further supporting its valuation as attractive. Despite recent stock performance lagging behind the Sensex, with a year-to-date decline of 24.18% compared to the Sensex's 6.21% gain, the underlying financial ratios suggest that the company remains a compelling investment opportunity.