Is Kwality Pharma overvalued or undervalued?

As of 19 September 2025, Kwality Pharma's valuation grade has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued. Key ratios supporting this assessment include a PE ratio of 22.94, an EV to EBITDA of 12.54, and a PEG ratio of 0.63, which suggests that the stock is priced favorably relative to its growth potential.
When compared to peers, Kwality Pharma's valuation appears more attractive than Sun Pharma, which has a PE ratio of 34.58 and is deemed expensive, and Divi's Lab, which is very expensive with a PE ratio of 71.28. In contrast, Cipla, another attractive peer, has a PE ratio of 23.55, indicating that Kwality Pharma is competitively priced within its industry. Additionally, Kwality Pharma has outperformed the Sensex over the past year with a return of 23.73%, compared to the Sensex's decline of 0.67%, reinforcing its undervalued status.