Is Biocon overvalued or undervalued?

As of 29 August 2025, Biocon's valuation grade has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued. Key ratios include a PE ratio of 133.06, an EV to EBITDA of 18.46, and a PEG ratio of 0.00, suggesting that the stock may be priced lower relative to its growth potential compared to its peers.
In comparison to its industry peers, Biocon's PE ratio is significantly higher than Sun Pharma's 33.34 and Cipla's 23.82, which are categorized as expensive and attractive, respectively. This indicates that while Biocon appears expensive on a standalone basis, its growth prospects may justify the valuation. Additionally, Biocon's recent stock performance has lagged behind the Sensex, with a year-to-date return of -4.68% compared to the Sensex's 2.14%, reinforcing the notion that the stock may be undervalued in the current market context.