Is Colinz Labs overvalued or undervalued?

As of 31 October 2025, the valuation grade for Colinz Labs has moved from expensive to fair. The company is currently fairly valued, with a PE ratio of 39.55, an EV to EBIT of 14.07, and a ROCE of 10.08%. In comparison to peers, Sun Pharma has an expensive valuation with a PE of 35.35, while Cipla is rated attractive with a much lower PE of 22.29, indicating that Colinz Labs is positioned in a relatively competitive spot within its sector.
Despite the fair valuation, Colinz Labs has experienced significant underperformance, with a year-to-date return of -40.47% compared to a 7.42% gain in the Sensex. This stark contrast highlights potential concerns regarding investor sentiment and market positioning, even as the company's valuation metrics suggest a more stable outlook.