Is Lyka Labs overvalued or undervalued?

As of 13 November 2025, Lyka Labs has moved from an attractive to a fair valuation grade, indicating a shift in its perceived investment quality. The company is currently considered overvalued based on its high PE ratio of 156.53, an EV to EBIT of 119.79, and a Price to Book Value of 3.16. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Lyka Labs' PE ratio significantly exceeds that of Cipla, which stands at 22.65, and Dr. Reddy's Labs at 17.86, both of which are classified as attractive. Additionally, while Lyka Labs has a PEG ratio of 0.00, indicating no growth expectations, its peers like Sun Pharma and Divi's Lab are categorized as expensive with PEG ratios of 11.96 and 1.99, respectively. The recent performance of Lyka Labs shows a substantial decline, with a year-to-date return of -43.61%, contrasting sharply with the Sensex's positive return of 8.11% during the same period, further reinforcing the overvaluation narrative.