Is Biocon overvalued or undervalued?

As of 5 September 2025, Biocon's valuation grade has moved from very attractive to attractive, indicating a shift in its perceived value. The company is currently considered overvalued based on its high PE ratio of 138.95, an EV to EBIT of 40.79, and a PEG ratio of 0.00, which suggests that the stock may not be justified at its current price level. In comparison, peers such as Sun Pharma, which has a PE ratio of 33.33, and Cipla, with a PE of 23.25, highlight the relative overvaluation of Biocon within the pharmaceutical sector.
Despite a recent stock return of 4.69% over the past week compared to a 1.13% return of the Sensex, Biocon's year-to-date return of -0.21% and a one-year return of -4.96% further emphasize concerns regarding its valuation. With a current price of 363.80 and a 52-week high of 405.90, the stock appears to be trading at a premium compared to its peers, reinforcing the conclusion that Biocon is overvalued in the current market environment.