Is Deccan Healthcar overvalued or undervalued?

As of 25 September 2025, Deccan Healthcar's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial ratios, with a PE ratio of 45.26, an EV to EBITDA of 14.49, and a Price to Book Value of 0.44. Compared to its peers, Deccan Healthcar's PE ratio is significantly higher than Cipla's 22.64 and Dr. Reddy's Labs' 18.72, both of which are rated as attractive.
In the context of its recent performance, Deccan Healthcar has underperformed the Sensex over the longer term, with a year-to-date return of -31.97% compared to the Sensex's 3.87%. This underperformance, coupled with its high valuation ratios, suggests that while the company may not be overvalued, it is not positioned as a compelling investment opportunity at this time.