Is Lupin overvalued or undervalued?

As of 1 October 2025, Lupin's valuation grade has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key ratios include a PE ratio of 24.42, an EV to EBITDA of 15.95, and a PEG ratio of 0.39, which suggests strong growth potential relative to its price.
In comparison to its peers, Lupin's valuation stands out favorably against Sun Pharma, which is classified as expensive with a PE ratio of 34.22, and Divi's Lab, which is very expensive at a PE ratio of 65.66. Additionally, while Lupin's ROCE is a robust 22.16%, it highlights the company's effective capital utilization compared to others in the sector. Despite a recent decline in stock performance relative to the Sensex on a year-to-date basis, the long-term return of 191.08% over three years underscores its potential for growth.