Is Broach Lifecare overvalued or undervalued?

As of 16 July 2025, the valuation grade for Broach Lifecare has moved from risky to attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, supported by a PE ratio of 13.35, an EV to EBIT of 13.28, and a ROCE of 13.19%. In comparison to its peers, Broach Lifecare's valuation metrics stand out, particularly against Max Healthcare, which has a PE ratio of 108.56, and Apollo Hospitals with a PE of 73.13, both of which are categorized as very expensive.
The financial ratios suggest that Broach Lifecare is positioned favorably within the hospital industry, especially with a PEG ratio of 0.00, indicating potential for growth without the burden of high valuations. While the stock has shown modest returns compared to the Sensex, with a year-to-date return of 1.85% versus the Sensex's 5.75%, the overall valuation metrics and peer comparisons reinforce the conclusion that Broach Lifecare is undervalued in the current market landscape.