Is Lyka Labs overvalued or undervalued?

As of 13 June 2025, the valuation grade for Lyka Labs has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 49.91, an EV to EBITDA of 25.12, and a PEG ratio of 0.11, which suggests strong growth potential relative to its price.
In comparison to its peers, Lyka Labs' PE ratio is significantly higher than that of Cipla, which stands at 23.08, and Dr. Reddy's Labs at 20.09, both of which are categorized as attractive. This indicates that while Lyka Labs is fairly valued, it may still be perceived as expensive relative to more attractively priced competitors. Notably, over the past year, Lyka Labs has outperformed the Sensex with a return of 6.98% compared to the Sensex's 5.61%, reinforcing its current valuation stance.