Is Dipna Pharmachem overvalued or undervalued?

As of 7 November 2025, Dipna Pharmachem's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued, with a PE ratio of 49.38, an EV to EBITDA ratio of 18.75, and a ROE of only 2.52%. These ratios suggest that the stock is trading at a premium compared to its earnings and book value. In comparison to its peers, Sun Pharma has a PE ratio of 35.17 and an EV to EBITDA of 10.65, while Cipla shows a more attractive valuation with a PE of 22.33 and an EV to EBITDA of 5.58. The stark contrast in these ratios highlights Dipna Pharmachem's overvaluation relative to its industry peers. Additionally, while the company has shown strong returns over the past year at 161.07%, its recent performance has been volatile, with a 1-month return of -13.13%, which further underscores the concerns regarding its current valuation.