Is Mankind Pharma overvalued or undervalued?

As of 8 August 2025, Mankind Pharma's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company remains overvalued based on its current financial metrics. The PE ratio stands at 53.68, significantly higher than its peers such as Sun Pharma with a PE of 33.19 and Cipla at 22.23, suggesting that Mankind Pharma's stock is trading at a premium compared to the industry average.
Additional ratios further illustrate this overvaluation, with an EV to EBITDA of 33.72 and a Price to Book Value of 7.11. While Mankind Pharma has shown a strong return on equity (ROE) of 14.78%, the overall valuation metrics indicate that the stock is not justified at its current price of 2465.90. Despite a recent one-year return of 19.09%, which outperformed the Sensex's 1.23%, the company's high valuation ratios suggest it is overvalued in the current market context.