Is Dr Lalchand. Lab overvalued or undervalued?

As of 16 September 2025, the valuation grade for Dr Lalchand Lab has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued based on its financial metrics. The PE ratio stands at 11.26, while the EV to EBITDA ratio is 11.82, and the ROE is a modest 4.40%.
In comparison to its peers, Dr Lalchand Lab's valuation appears excessive, particularly when compared to Apollo Hospitals, which has a PE ratio of 71.78 and is rated as fairly valued. Other peers like Max Healthcare and Fortis Health are also categorized as very expensive, with PE ratios of 93.63 and 78.97, respectively. Despite a strong year-to-date return of 53.73%, the company's current valuation does not align with its financial performance, reinforcing the conclusion that it is overvalued.