Is Pratham EPC overvalued or undervalued?

As of 17 June 2025, the valuation grade for Pratham EPC has moved from attractive to very attractive, indicating a significant positive shift in its perceived value. The company is currently considered undervalued. Key ratios include a PE ratio of 20.40, an EV to EBITDA of 15.08, and a PEG ratio of 0.65, which suggests that the stock is priced favorably relative to its growth potential.
In comparison to its peers, Pratham EPC's PE ratio is notably lower than that of Reliance Industries, which stands at 27.81, and also lower than the average for other companies in the sector. The strong ROCE of 34.12% and ROE of 22.23% further reinforce the company's efficient use of capital. Despite a challenging recent performance with a year-to-date decline of 24.13%, the valuation metrics suggest that Pratham EPC presents a compelling investment opportunity in the construction industry.