Is Glenmark Pharma overvalued or undervalued?

As of 1 October 2025, Glenmark Pharma's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its stock price. The company is currently fairly valued, with a PE ratio of 49.33, an EV to EBITDA of 23.85, and a PEG ratio of 0.19, which suggests strong growth potential relative to its price.
In comparison to its peers, Glenmark Pharma's PE ratio is significantly higher than that of Cipla at 22.63 and Dr. Reddy's Labs at 18.31, both of which are considered attractive. Despite this, Glenmark's PEG ratio is notably low, indicating that it may be undervalued in terms of growth prospects compared to its earnings. Additionally, Glenmark has outperformed the Sensex with a year-to-date return of 21.41% compared to the Sensex's 3.64%, reinforcing the notion that the stock may be positioned well for future growth.