Is Lyka Labs overvalued or undervalued?

As of 23 September 2025, the valuation grade for Lyka Labs has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 47.39, an EV to EBITDA ratio of 21.95, and a PEG ratio of 0.08, which suggests that while the stock is expensive in terms of earnings, it may offer growth potential relative to its price.
When compared to its peers, Lyka Labs has a higher PE ratio than Sun Pharma (34.11) and a significantly lower PEG ratio, indicating that it may be undervalued in terms of growth prospects compared to its earnings. Other peers like Cipla, which is rated attractive, has a PE of 22.93, further highlighting Lyka Labs' premium valuation. Additionally, the stock has underperformed against the Sensex over the past year, with a return of -33.85% compared to the Sensex's -3.33%, reinforcing the notion that the stock may be fairly valued given its recent performance.