Is Mankind Pharma overvalued or undervalued?

As of 1 September 2025, Mankind Pharma's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued, with a PE ratio of 55.02, a Price to Book Value of 7.28, and an EV to EBITDA ratio of 31.86. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Mankind Pharma's PE ratio is notably higher than Sun Pharma's 32.69 and Cipla's 23.72, both of which are in a less expensive valuation category. Additionally, while Divi's Lab has a higher EV to EBITDA ratio at 51.42, Mankind's ratios still place it in a very expensive bracket, highlighting its overvaluation status. Despite a slight positive return of 1.2% over the past year compared to a -2.43% return for the Sensex, the overall valuation metrics suggest that Mankind Pharma is not a compelling investment at its current price of 2517.75.