Is Marksans Pharma overvalued or undervalued?

As of 7 May 2025, the valuation grade for Marksans Pharma has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued based on its high valuation ratios. The PE ratio stands at 30.12, while the EV to EBITDA ratio is 20.96, both of which are elevated compared to industry norms. Additionally, the PEG ratio is 1.41, suggesting that the stock is priced high relative to its growth expectations.
In comparison to its peers, Marksans Pharma's valuation appears steep. For instance, Sun Pharma has a PE ratio of 35.25 and an EV to EBITDA of 24.91, categorizing it as expensive, while Cipla is deemed attractive with a PE of 22.99 and an EV to EBITDA of 15.93. The notable outperformance of Marksans Pharma's stock over the past year, with a return of 62.81% compared to the Sensex's 7.61%, may contribute to its current overvaluation status. Overall, the data suggests that Marksans Pharma's stock is priced too high relative to its earnings and growth potential.