Is Granules India overvalued or undervalued?

As of 6 November 2025, Granules India has moved from an expensive to a fair valuation grade. The company is currently fairly valued based on its valuation metrics. Key ratios include a PE ratio of 28.14, an EV to EBITDA of 15.28, and a ROCE of 15.74%.
In comparison to its peers, Granules India’s PE ratio is lower than Sun Pharma's 35.02 and Divi's Lab's 79.09, indicating a more attractive valuation relative to these companies. Additionally, while Granules India has a PEG ratio of 0.00, indicating potential for growth, it is worth noting that its dividend yield stands at a modest 0.27%. Despite recent underperformance against the Sensex over the past year, with a stock return of -4.20% compared to the Sensex's 3.65%, the long-term performance over the last decade shows a substantial gain of 290.73%.