Is Novelix Pharma. overvalued or undervalued?

As of 4 November 2025, the valuation grade for Novelix Pharma has moved from does not qualify to very expensive. The company is currently overvalued, as indicated by its exceptionally high PE ratio of 1075.66, an EV to EBIT of 74.62, and a PEG ratio of 9.35. In comparison to its peers, Sun Pharma has a PE ratio of 35.41 and an EV to EBITDA of 24.02, while Divi's Lab shows a PE of 78.59 and an EV to EBITDA of 57.75, both of which are significantly lower than Novelix Pharma's ratios.
The company's financials reflect a negative ROCE of -3.74% and a low ROE of 0.40%, further supporting the assessment of overvaluation. Although Novelix Pharma has outperformed the Sensex over the past three years with a return of 447.37% compared to the Sensex's 36.93%, the current valuation metrics suggest that the stock is not justified at its current price of 52.00.