Is Deccan Healthcar overvalued or undervalued?

As of 24 September 2025, the valuation grade for Deccan Healthcare has moved from fair to attractive, indicating a more favorable assessment of its worth. The company appears to be undervalued, especially when considering its price-to-earnings (PE) ratio of 44.49, which, while high, is lower compared to peers like Divi's Laboratories at 68.78 and Torrent Pharmaceuticals at 60.83. Additionally, its price-to-book value stands at a remarkably low 0.43, suggesting that the market may not be fully recognizing the underlying asset value.
In comparison to its peers, Deccan Healthcare's EV to EBITDA ratio of 14.23 is also more attractive than Sun Pharma's 23.03, further supporting the undervaluation thesis. Despite recent stock performance lagging behind the Sensex, particularly with a year-to-date decline of 33.13% versus a 4.58% gain for the index, the current valuation metrics suggest that Deccan Healthcare presents a compelling investment opportunity in the healthcare services sector.