Is Coral Labs. overvalued or undervalued?

As of 12 November 2025, Coral Labs has moved from a very attractive to an attractive valuation grade. The company is currently considered undervalued. Key ratios include a PE ratio of 10.04, an EV to EBITDA of 4.62, and a Price to Book Value of 0.92, which are significantly lower than many of its peers. For instance, Sun Pharma has a PE ratio of 35.94 and Divi's Lab has a PE ratio of 69.64, both categorized as expensive, indicating that Coral Labs is trading at a more favorable valuation relative to these competitors.
In addition to the favorable ratios, Coral Labs shows a strong ROCE of 24.89% and ROE of 9.18%, suggesting efficient use of capital. The company's recent stock performance has been mixed, with a year-to-date return of -31.95%, contrasting sharply with the Sensex's positive return of 8.10% over the same period. This underperformance may present a buying opportunity, given the company's solid fundamentals and attractive valuation compared to its peers.