Is Mankind Pharma overvalued or undervalued?

As of 4 July 2025, Mankind Pharma's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently deemed overvalued, with a PE ratio of 50.59, an EV to EBITDA ratio of 31.80, and a Price to Book Value of 9.53. These ratios suggest that Mankind Pharma's stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Mankind Pharma's valuation stands out negatively; for instance, Sun Pharma has a PE ratio of 35.2, while Cipla is significantly lower at 23.2, indicating that Mankind's valuation is not justified relative to these competitors. The company's recent stock performance has been mixed, showing a 12.3% return over the past year, which outperformed the Sensex's 4.23% return, but it has underperformed year-to-date with a decline of 15.24% compared to the Sensex's gain of 6.77%. Overall, the current valuation metrics strongly suggest that Mankind Pharma is overvalued in the market.