Is Eiko Lifescience overvalued or undervalued?

As of 18 July 2025, Eiko Lifescience's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued, with a PE ratio of 53.21, an EV to EBIT of 64.00, and an EV to EBITDA of 40.42. These ratios significantly exceed those of its peers, such as Life Insurance with a PE of 12.08 and Bajaj Finserv at 36.56, highlighting the premium Eiko is trading at compared to the industry standards.
In addition to its high valuation ratios, Eiko Lifescience has a low ROCE of 2.31% and ROE of 2.63%, which further suggests that the current price may not be justified by its earnings performance. While the stock has outperformed the Sensex over the past week and month, its year-to-date and one-year returns are notably negative, reinforcing the notion that the stock may be overvalued in the current market context.