Is Dr Lalchand. Lab overvalued or undervalued?

As of 15 September 2025, the valuation grade for Dr Lalchand Lab has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued based on its financial ratios. Notably, the PE ratio stands at 11.26, the EV to EBITDA ratio is 11.82, and the ROCE is only 4.54%, which are relatively low compared to its peers.
In comparison, Max Healthcare has a significantly higher PE ratio of 94.84 and an EV to EBITDA of 58.75, while Apollo Hospitals, which is rated attractive, has a PE of 71.39 and an EV to EBITDA of 36.71. These comparisons highlight that Dr Lalchand Lab's valuation metrics are not competitive within the industry. Despite a strong year-to-date stock return of 53.73% compared to the Sensex's 4.67%, the overall valuation suggests that the stock remains overvalued relative to its peers.