Is Kwality Pharma overvalued or undervalued?

As of 16 September 2025, the valuation grade for Kwality Pharma has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued. Key ratios include a PE ratio of 23.06, an EV to EBITDA of 12.60, and a PEG ratio of 0.63, which suggests that the stock is priced favorably relative to its growth prospects.
In comparison to its peers, Kwality Pharma's PE ratio is lower than Sun Pharma's 33.64 and Divi's Lab's 70, while it is slightly below Cipla's 23.31. The attractive valuation of Kwality Pharma is further supported by its strong ROCE of 17.17% and ROE of 15.09%. Notably, the company's stock has outperformed the Sensex over the past year, returning 24.5% compared to a decline of 0.73% for the index, reinforcing the attractiveness of its current valuation.