Is Pratham EPC overvalued or undervalued?

As of 23 June 2025, the valuation grade for Pratham EPC has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently assessed as undervalued. Key ratios include a PE ratio of 19.99, an EV to EBITDA of 14.76, and a PEG ratio of 0.64, all of which suggest that the stock is trading at a favorable valuation compared to its earnings growth potential.
In comparison to its peers, Pratham EPC's PE ratio is notably lower than that of Reliance Industries, which stands at 28.3, while its EV to EBITDA is more competitive than ONGC's 8.7. The high ROCE of 34.12% and ROE of 22.23% further reinforce the company's strong operational efficiency. Additionally, the recent stock performance has been underwhelming, with a year-to-date return of -25.66%, contrasting sharply with the Sensex's gain of 5.61%, which may present a buying opportunity for investors looking for value in the construction sector.