Is Innova Captab overvalued or undervalued?

As of 14 August 2025, the valuation grade for Innova Captab has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 39.85, an EV to EBITDA ratio of 27.76, and a PEG ratio of 1.11. In comparison to its peers, Sun Pharma has a PE ratio of 34.24 and an EV to EBITDA of 23.18, while Cipla offers a more attractive valuation with a PE of 23.41 and an EV to EBITDA of 16.49.
Despite the recent downgrade in valuation, Innova Captab has shown strong performance over the past year, with a stock return of 39.47%, significantly outperforming the Sensex's return of 1.89%. However, the company's high valuation ratios suggest that it may be nearing its peak, particularly in comparison to its peers in the pharmaceuticals and biotechnology sector.