Is Mankind Pharma overvalued or undervalued?

As of 3 June 2025, Mankind Pharma's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company is still considered overvalued. The key ratios highlight this concern, with a PE ratio of 48.81, an EV to EBITDA ratio of 30.63, and a Price to Book Value of 9.19, all of which are significantly higher than industry norms.
In comparison to its peers, Mankind Pharma's PE ratio is notably higher than Sun Pharmaceutical Industries Ltd., which stands at 35.25, and Cipla Ltd., which has a PE of 22.99. This suggests that Mankind Pharma is trading at a premium compared to these competitors. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -17.62% compared to the Sensex's 5.56%, further reinforcing the view that it is overvalued in the current market environment.