Is Dr Lalchand. Lab overvalued or undervalued?

As of 10 September 2025, the valuation grade for Dr Lalchand Lab has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently overvalued based on its financial ratios and peer comparisons. Key ratios include a PE ratio of 11.26, an EV to EBIT ratio of 12.29, and a ROCE of 4.54%.
In comparison to its peers, Dr Lalchand Lab's valuation stands out as very expensive, particularly against Max Healthcare with a PE of 95.29 and Apollo Hospitals at 72.53. The company's recent stock performance has been strong, with a year-to-date return of 53.73%, significantly outpacing the Sensex's 4.21% during the same period. However, despite this positive performance, the overall valuation suggests that Dr Lalchand Lab is not a favorable investment at this time.