Is Bajaj Healthcare overvalued or undervalued?

As of 23 September 2025, Bajaj Healthcare's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 30.94, an EV to EBITDA of 20.43, and a PEG ratio of 0.78, which suggests that while the stock is priced at a premium, its growth potential is still favorable compared to its earnings.
In comparison to its peers, Bajaj Healthcare's PE ratio is lower than Sun Pharma's 34.11 and Divi's Lab's 69.64, both of which are considered expensive. However, it is higher than Cipla's attractive PE of 22.93 and Dr. Reddy's Labs at 19.21, which are more reasonably priced. Notably, Bajaj Healthcare's recent stock performance has outpaced the Sensex in the short term, with a 1-week return of 6.33% compared to the Sensex's -0.34%, reinforcing its competitive positioning despite the overall market trends.