Is Mankind Pharma overvalued or undervalued?

As of 10 June 2025, Mankind Pharma's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued. Key ratios include a PE ratio of 49.40, an EV to EBITDA of 31.02, and a Price to Book Value of 9.30, all of which are considerably higher than industry norms.
In comparison to its peers, Mankind Pharma's PE ratio is notably higher than Sun Pharma's 35.45 and Cipla's 23.11, both of which are in a more attractive valuation range. Additionally, Mankind's EV to EBITDA of 31.02 is also elevated compared to Sun Pharma's 25.06. This suggests that Mankind Pharma is trading at a premium relative to its peers, reinforcing the conclusion of overvaluation. Despite a recent one-year stock return of 9.45%, which outperformed the Sensex return of 7.72%, the overall valuation metrics indicate that the stock is not justified at its current price level.