Is Dipna Pharmachem overvalued or undervalued?

As of 23 September 2025, Dipna Pharmachem's valuation grade has moved from fair to expensive, indicating a shift in its market perception. The company is currently overvalued, with a PE ratio of 50.54, an EV to EBIT ratio of 19.58, and a ROE of 2.52%. In comparison to its peers, Sun Pharma has a PE of 34.11 and an EV to EBITDA of 23.09, while Cipla, which is considered attractive, has a PE of 22.93 and an EV to EBITDA of 16.13.
The high valuation ratios of Dipna Pharmachem suggest that investors are paying a premium for its stock relative to its earnings and book value, especially when compared to more attractively valued peers. Notably, despite a strong one-year stock return of 158.87%, the company's current valuation does not seem justified when considering its financial metrics and peer comparisons.