Is Lupin overvalued or undervalued?

As of 7 November 2025, Lupin's valuation grade has moved from very attractive to attractive. The company is currently considered fairly valued. Key ratios include a PE ratio of 20.82, an EV to EBITDA of 13.53, and a PEG ratio of 0.32, indicating strong growth potential relative to its price.
In comparison to its peers, Lupin's valuation appears more favorable; for instance, Sun Pharma has a PE ratio of 35.17 and Divi's Lab stands at 71.11, both categorized as expensive. Other attractive peers include Cipla with a PE of 22.33 and Dr. Reddy's Labs at 17.43. Despite a challenging year-to-date return of -16.17% compared to the Sensex's 6.50%, Lupin's solid ROCE of 22.16% and ROE of 19.08% suggest it remains a robust investment in the pharmaceuticals sector.