Is Kilitch Drugs overvalued or undervalued?

As of 16 October 2025, Kilitch Drugs has moved from a fair to an expensive valuation grade. The company is currently considered overvalued based on its financial ratios. The PE ratio stands at 22.93, the EV to EBIT ratio is 21.37, and the EV to EBITDA ratio is 19.34, which are relatively high compared to industry peers.
In comparison, Sun Pharma has a PE ratio of 34.69 and an EV to EBITDA of 23.51, while Cipla is rated attractive with a PE of 23.51 and an EV to EBITDA of 16.57. This indicates that Kilitch Drugs is trading at a premium relative to some of its competitors. Despite its strong performance with a year-to-date return of 13.73% compared to the Sensex's 6.82%, the current valuation suggests that the stock may not present a favorable investment opportunity at this time.