Is Ipca Labs overvalued or undervalued?

As of 13 June 2025, the valuation grade for Ipca Labs has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 41.19, an EV to EBITDA of 20.26, and a PEG ratio of 0.68, indicating that the stock may be undervalued relative to its growth prospects.
In comparison to its peers, Ipca Labs has a higher PE ratio than Sun Pharma (35.43) but is significantly lower than Divi's Lab (80.94), which is classified as very expensive. Other attractive peers include Cipla, with a PE of 23.08, and Dr. Reddy's Labs, with a PE of 20.09. Notably, while Ipca Labs has underperformed the Sensex year-to-date with a return of -19.09%, it has outperformed over the past year with a return of 14.10%.