Is Dipna Pharmachem overvalued or undervalued?

As of 8 July 2025, the valuation grade for Dipna Pharmachem has moved from does not qualify to expensive. The company is currently overvalued based on its financial metrics. Key ratios include a PE ratio of 59.37, an EV to EBIT of 18.88, and a ROE of 2.59%.
In comparison to its peers, Sun Pharma has a PE ratio of 35.1 and an EV to EBITDA of 24.8, while Cipla presents a more attractive valuation with a PE ratio of 22.8 and an EV to EBITDA of 15.79. Despite the company's strong stock performance, with a year-to-date return of 71.34% compared to the Sensex's 7.13%, the elevated valuation ratios suggest that Dipna Pharmachem may not be a prudent investment at its current price.