Is Akums Drugs overvalued or undervalued?

Jun 09 2025 04:53 PM IST
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As of May 28, 2025, Akums Drugs is considered an attractive investment due to its undervalued status, with a PE ratio of 27.65, lower than peers like Sun Pharmaceutical and Divi's Laboratories, despite a year-to-date return of -11.07% compared to the Sensex's 5.54%.
As of 28 May 2025, the valuation grade for Akums Drugs has moved from does not qualify to attractive, indicating a significant improvement in its investment appeal. The company is currently assessed as undervalued. Key ratios include a PE ratio of 27.65, an EV to EBITDA of 18.09, and a ROCE of 12.16%.

In comparison to its peers, Akums Drugs has a lower PE ratio than Sun Pharmaceutical Industries Ltd., which stands at 35.25, and Divi's Laboratories Ltd., which is at 79.33. Other attractive peers include Cipla Ltd. with a PE of 22.99 and Dr. Reddy's Laboratories Ltd. at 19.49, further supporting the notion that Akums Drugs is undervalued within its sector. Despite a recent underperformance compared to the Sensex, with a year-to-date return of -11.07% against the Sensex's 5.54%, the company's valuation metrics suggest a favorable investment opportunity.
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