Is Granules India overvalued or undervalued?

Aug 28 2025 08:03 AM IST
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As of August 26, 2025, Granules India is fairly valued with a PE ratio of 23.82 and has underperformed the market with a year-to-date return of -21.04%, suggesting it may not be a compelling investment opportunity despite not being overvalued.
As of 26 August 2025, Granules India has moved from an attractive to a fair valuation grade. The company is currently fairly valued, with a PE ratio of 23.82, a Price to Book Value of 3.05, and an EV to EBITDA of 13.08. In comparison with peers, Cipla has a PE of 23.64 and an EV to EBITDA of 16.66, while Sun Pharma is considered expensive with a PE of 33.48 and an EV to EBITDA of 22.63.

Despite its fair valuation, Granules India has underperformed in the market, with a year-to-date return of -21.04% compared to a positive 3.39% for the Sensex. This underperformance, along with its current ratios, suggests that while the stock is not overvalued, it may not present a compelling investment opportunity at this time.
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