Is Aakaar Medical overvalued or undervalued?

As of 17 September 2025, Aakaar Medical's valuation grade has moved from does not qualify to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 20.94, an EV to EBITDA of 14.77, and a ROE of 26.03%.
In comparison to its peers, Aakaar Medical's PE ratio is notably lower than that of Sun Pharma Industries, which has a PE of 33.91, but higher than Cipla's attractive PE of 23.36. The company's PEG ratio stands at 0.00, suggesting a lack of growth expectations compared to its peers. Recent stock performance shows Aakaar Medical outperforming the Sensex over the past week, with a return of 5% compared to the Sensex's 1.43%. Overall, the company's valuation appears stretched relative to its financial performance and peer group.