Is Emcure Pharma overvalued or undervalued?

As of 27 June 2025, the valuation grade for Emcure Pharma has moved from very expensive to expensive, indicating a slight shift in perception regarding its valuation. The company is currently considered overvalued. Key ratios include a PE ratio of 35.62, an EV to EBITDA of 17.18, and a ROCE of 20.86%.
In comparison to its peers, Emcure Pharma's PE ratio is higher than Sun Pharma's at 35.42 and significantly above Cipla's attractive valuation with a PE of 23.02. This suggests that Emcure is priced at a premium relative to some of its competitors, which may not be justified given its performance metrics. Additionally, Emcure's stock has underperformed relative to the Sensex, with a year-to-date return of -9.94% compared to the Sensex's 7.58%, further reinforcing the notion that the stock may be overvalued at its current price of 1295.00.