Is Alembic Pharma overvalued or undervalued?

As of 6 November 2025, Alembic Pharma's valuation grade has moved from attractive to very attractive, indicating a significant positive shift in its valuation outlook. The company is currently considered undervalued, especially when compared to its peers. Key ratios include a PE ratio of 28.37, an EV to EBITDA of 27.19, and a Price to Book Value of 0.34, which highlight its potential for growth relative to its market price.
In comparison to its peers, Alembic Pharma's valuation stands out; for instance, Sun Pharma has a PE ratio of 35.02 and Divi's Lab is at 79.09, both categorizing them as expensive. Additionally, while Alembic Pharma's PEG ratio is 0.00, indicating no growth premium, competitors like Cipla and Dr. Reddy's Labs have PEG ratios of 1.25 and 2.15, respectively, suggesting that Alembic may offer better value. Despite a recent decline in stock performance relative to the Sensex over the past year, the company's strong fundamentals and attractive valuation metrics position it favorably in the market.