Is Lyka Labs overvalued or undervalued?

As of 16 September 2025, the valuation grade for Lyka Labs has moved from attractive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE Ratio of 47.59, an EV to EBITDA of 22.03, and a PEG Ratio of 0.08, indicating a low growth expectation relative to its price.
In comparison to its peers, Lyka Labs' PE Ratio is significantly higher than that of Cipla, which stands at 23.31, and Dr Reddy's Labs at 19.25, both of which are considered attractive. This suggests that while Lyka Labs is fairly valued, it may not offer the same value proposition as some of its competitors. Additionally, the stock has underperformed against the Sensex year-to-date, with a return of -36.97% compared to the Sensex's 5.43%, reinforcing the notion that the stock may not be positioned for immediate growth.