Is Eiko Lifescience overvalued or undervalued?

As of 26 June 2025, Eiko Lifescience's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 46.41, an EV to EBIT ratio of 54.66, and a PEG ratio of 0.69. In comparison to its peers, Eiko's valuation metrics are significantly higher; for instance, Life Insurance has a PE of 12.52 and EV to EBITDA of 9.87, while Bajaj Finance is deemed very expensive with a PE of 35.54.
Despite the fair valuation, Eiko Lifescience has underperformed against the Sensex in recent periods, particularly with a year-to-date return of -20.1% compared to the Sensex's 7.19%. This underperformance, coupled with its high valuation ratios, suggests that while the company is currently fairly valued, it may face challenges in justifying its valuation in the near future.