Is Kwality Pharma overvalued or undervalued?

As of 13 November 2025, Kwality Pharma's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 23.53, an EV to EBITDA ratio of 12.83, and a PEG ratio of 0.64. In comparison to its peers, Sun Pharma is considered expensive with a PE ratio of 36.15, while Cipla is attractive with a PE of 22.65, suggesting that Kwality Pharma is positioned reasonably within its competitive landscape.
Despite the fair valuation, Kwality Pharma has shown strong performance relative to the Sensex, with a year-to-date return of 13.21% compared to the Sensex's 8.11%. This performance, along with its solid ROCE of 17.17% and ROE of 15.09%, reinforces the notion that while the stock is fairly valued, it may still present an appealing investment opportunity in the pharmaceutical sector.