Is Bafna Pharma. overvalued or undervalued?

As of 19 November 2025, Bafna Pharma's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently deemed overvalued, with a PE ratio of 39.01, a Price to Book Value of 4.86, and an EV to EBITDA of 28.15. These ratios suggest that Bafna Pharma is trading at a premium compared to its peers, such as Sun Pharma with a PE of 37.07 and Divi's Lab at a staggering 68.85.
In comparison to the broader pharmaceutical industry, Bafna Pharma's valuation metrics are notably higher than those of more attractively valued companies like Cipla, which has a PE of 22.64, and Dr. Reddy's Labs at 18.06. Despite a strong year-to-date return of 116.10%, which outpaces the Sensex's 10.18%, the current valuation levels suggest that investors may be overestimating the company's growth potential.