Is Kwality Pharma overvalued or undervalued?

As of 18 June 2025, the valuation grade for Kwality Pharma has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 27.87, an EV to EBITDA of 15.03, and a PEG ratio of 0.73, indicating a reasonable growth expectation relative to its price.
In comparison to its peers, Kwality Pharma's PE ratio is lower than that of Sun Pharma, which stands at 34.54, and Divi's Lab, which is at 79.25, both of which are considered expensive. On the other hand, it is more favorable than Cipla's PE of 22.98 and Dr. Reddy's Labs at 19.37, both of which are categorized as attractive. Additionally, Kwality Pharma has outperformed the Sensex significantly over various periods, with a 1-year return of 95.24% compared to the Sensex's 5.36%, reinforcing its valuation story.