Is Kwality Pharma overvalued or undervalued?

As of 14 November 2025, the valuation grade for Kwality Pharma has moved from fair to attractive, indicating a positive shift in its market perception. The company is currently considered undervalued based on its key financial ratios, including a PE ratio of 20.24, an EV to EBITDA of 11.51, and a PEG ratio of 0.45, which suggests strong growth potential relative to its price.
In comparison to its peers, Kwality Pharma's valuation appears favorable; for instance, Sun Pharma has a PE ratio of 36.49, while Divi's Lab shows a significantly higher PE of 69.65, both categorizing them as expensive. Additionally, Cipla, which is also rated attractive, has a PE ratio of 22.72, further highlighting Kwality Pharma's relative value. The company's recent stock performance has outpaced the Sensex, with a 1-week return of 11.37% compared to the Sensex's 1.62%, reinforcing the argument for its undervaluation.