Is Chandra Bhagat overvalued or undervalued?

As of 30 May 2025, the valuation grade for Chandra Bhagat has moved from does not qualify to risky, indicating a significant downgrade in its investment attractiveness. The company is currently considered overvalued, especially when compared to its peers. Key ratios include a PE ratio of 42.25, an EV to EBITDA of -36.70, and a ROE of 3.03%.
In comparison, Sun Pharmaceutical Industries Ltd. has a PE ratio of 35.25 and an EV to EBITDA of 24.91, while Cipla Ltd. shows a more favorable PE of 22.99 and an EV to EBITDA of 15.93, both suggesting better valuation metrics. Additionally, Chandra Bhagat's stock has underperformed significantly, with a year-to-date return of -15.15% compared to a 5.58% return for the Sensex, reinforcing the notion that the stock is overvalued in its current state.