Is Lyka Labs overvalued or undervalued?

As of 15 September 2025, the valuation grade for Lyka Labs has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 47.11, an EV to EBITDA of 21.83, and a PEG ratio of 0.08, which suggests that the stock is priced attractively relative to its growth potential.
In comparison to its peers, Lyka Labs stands out with a higher PE ratio than Sun Pharma (33.52) and a significantly lower PEG ratio than Divi's Lab (1.84), indicating that while it may appear expensive on a PE basis, its growth prospects are undervalued. The recent stock performance shows a decline of 37.60% year-to-date, contrasting with a modest 4.67% gain in the Sensex, which further reinforces the notion that Lyka Labs may be undervalued in the current market context.