Is Kwality Pharma overvalued or undervalued?

As of 17 September 2025, the valuation grade for Kwality Pharma has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics. Key ratios include a PE Ratio of 23.50, an EV to EBITDA of 12.82, and a PEG Ratio of 0.64, which suggests that the stock is reasonably priced relative to its growth potential.
In comparison to its peers, Kwality Pharma's PE Ratio is notably lower than Sun Pharma's 33.91, which is categorized as expensive, and slightly higher than Cipla's attractive PE of 23.36. This positions Kwality Pharma competitively within the pharmaceutical sector. Additionally, the company's recent stock performance has outpaced the Sensex over the past year, with a return of 21.87% compared to the Sensex's -0.46%, reinforcing the notion that it is fairly valued in the current market environment.