Is Dipna Pharmachem overvalued or undervalued?

As of 16 October 2025, the valuation grade for Dipna Pharmachem has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company remains overvalued based on its current metrics. The PE ratio stands at 51.81, significantly higher than its peers, while the EV to EBITDA ratio is 19.44. In comparison, Sun Pharma has a PE ratio of 34.69, and Cipla, which is rated attractive, has a PE ratio of 23.51.
Given these ratios and the overall market context, Dipna Pharmachem is deemed overvalued. The company's return on equity (ROE) is notably low at 2.52%, which raises concerns about its profitability relative to its market price. Additionally, while the stock has performed exceptionally well over the past year with a return of 176.82%, this stark contrast to the Sensex's 2.41% suggests that the stock may be experiencing speculative interest rather than fundamental strength.