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 market perception. The company is currently considered undervalued, with a PE ratio of 22.94, an EV to EBITDA ratio of 12.54, and a PEG ratio of 0.63, suggesting that its growth potential is not fully reflected in its current price.
In comparison to its peers, Kwality Pharma's valuation appears favorable against Sun Pharma, which has a PE ratio of 34.58, and Divi's Lab, with a PE ratio of 71.28, both categorized as expensive. Other attractive peers include Cipla with a PE of 23.55 and Dr. Reddy's Labs at 19.43. Notably, Kwality Pharma has outperformed the Sensex over the past year, with a return of 23.73% compared to the Sensex's -0.67%, reinforcing its attractive valuation in the current market landscape.