Is Dipna Pharmachem overvalued or undervalued?

As of 14 October 2025, the valuation grade for Dipna Pharmachem has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently considered overvalued. Key ratios reveal a PE ratio of 56.27, an EV to EBIT of 20.75, and a ROE of just 2.52%, which highlights a concerning level of profitability relative to its market price. When compared to peers, Dipna Pharmachem's valuation stands out unfavorably; for instance, Sun Pharma has a PE ratio of 34.56 and an EV to EBITDA of 23.41, while Cipla is valued attractively with a PE of 23.2 and an EV to EBITDA of 16.34. The stark contrast in these ratios suggests that Dipna Pharmachem is not only overpriced relative to its peers but also lacks the financial performance to justify its high valuation. Despite a strong year-to-date return of 57.53%, the overall valuation metrics indicate that the stock is not a favorable investment at its current price level.