Is Hikal overvalued or undervalued?

As of 13 June 2025, Hikal's valuation grade has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued based on its current metrics. Key ratios include a PE Ratio of 51.20, an EV to EBITDA of 16.43, and a PEG Ratio of 1.67.
When compared to peers, Hikal's valuation stands out; for instance, Sun Pharma has a PE Ratio of 35.43 and is considered expensive, while Cipla, also rated attractive, has a significantly lower PE Ratio of 23.08. Additionally, Hikal's recent stock performance has outpaced the Sensex over the past year, with a return of 25.16% compared to the Sensex's 5.61%, further reinforcing the notion that Hikal may be undervalued in the current market.