Is Coral Labs. overvalued or undervalued?

As of 26 September 2025, Coral Labs has moved from an attractive to a very attractive valuation grade. The company is currently undervalued, with a PE ratio of 9.42, a Price to Book Value of 0.86, and an EV to EBITDA ratio of 3.97. These ratios indicate that the stock is trading at a significant discount compared to its peers, such as Sun Pharma, which has a PE ratio of 33.18, and Divi's Lab, with a PE ratio of 65.51.
The peer comparison further supports the undervaluation thesis, as Coral Labs' PEG ratio stands at 0.00, while competitors like Cipla and Dr. Reddy's Labs have PEG ratios of 1.05 and 9.12, respectively. Despite recent stock performance showing a decline, particularly with a year-to-date drop of 36.16% compared to a 2.93% increase in the Sensex, the underlying financial metrics suggest that Coral Labs presents a compelling investment opportunity at its current price of 487.00.