Is Fermenta Biotec. overvalued or undervalued?

Jul 02 2025 08:01 AM IST
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As of July 1, 2025, Fermenta Biotec is considered an attractive investment with a PE ratio of 12.65, an EV to EBITDA of 9.25, and a PEG ratio of 0.02, indicating it is undervalued compared to peers like Sun Pharma and Cipla, and has significantly outperformed the Sensex with a one-year return of 99.19%.
As of 1 July 2025, the valuation grade for Fermenta Biotec has moved from very attractive to attractive, indicating a shift in perception regarding its investment potential. The company is currently assessed as undervalued. Key ratios include a PE ratio of 12.65, an EV to EBITDA of 9.25, and a PEG ratio of 0.02, which suggests that the stock is trading at a significant discount relative to its growth prospects.

In comparison to its peers, Fermenta Biotec's valuation appears favorable; for instance, Sun Pharma has a PE ratio of 34.98, while Cipla stands at 23.21. This highlights Fermenta's relative attractiveness in the pharmaceuticals and biotechnology sector. Additionally, the company's recent stock performance has outpaced the Sensex, with a one-year return of 99.19% compared to the Sensex's 5.31%, further reinforcing its undervalued status in the market.
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