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 shift in its perceived market value. The company is currently 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 the stock is trading at a premium compared to its earnings and book value, which raises concerns about its sustainability at these levels.
In comparison with its peers, Mankind Pharma's valuation stands out unfavorably; for instance, Sun Pharma has a PE ratio of 35.2 and an EV to EBITDA of 24.87, while Cipla presents a more attractive valuation with a PE of 23.2 and an EV to EBITDA of 16.09. The substantial disparity in these ratios highlights Mankind Pharma's overvaluation relative to its industry peers. Additionally, while the company has shown a strong return over the past year at 12.3%, this is contrasted by a year-to-date decline of 15.24%, suggesting that the stock's high valuation may not be justified by its recent performance.