Is Jenburkt Pharma overvalued or undervalued?

As of 8 July 2025, the valuation grade for Jenburkt Pharma has moved from very expensive to expensive. The company is currently considered overvalued based on its financial ratios and peer comparisons. Key ratios include a PE ratio of 18.78, an EV to EBIT of 15.38, and a PEG ratio of 0.81, which suggest that while the company has a reasonable growth outlook, its current valuation does not align well with its earnings potential.
In comparison to its peers, Jenburkt Pharma's PE ratio is significantly lower than that of Sun Pharma (35.1) and Divi's Lab (83.84), both of which are categorized as expensive or very expensive. On the other hand, companies like Dr. Reddy's Labs and Cipla, which are rated attractive, have PE ratios of 18.95 and 22.8, respectively. Despite Jenburkt Pharma's strong return performance against the Sensex over various periods, including a 1Y return of 53.96% compared to the Sensex's 4.69%, the current valuation suggests that the stock may not be a prudent investment at this time.