Is Marksans Pharma overvalued or undervalued?

As of 10 September 2025, Marksans Pharma's valuation grade has moved from fair to expensive, indicating a shift in perception regarding its market value. The company appears to be overvalued based on key financial metrics, including a PE ratio of 22.94, an EV to EBITDA of 15.25, and a PEG ratio of 4.68. These figures suggest that the stock is priced at a premium compared to its earnings growth potential.
In comparison to its peers, Marksans Pharma's valuation stands out as expensive, especially when juxtaposed with Sun Pharma, which has a higher PE ratio of 33.38, and Cipla, which is considered attractive with a PE of 23.41. The recent performance of Marksans Pharma has also been underwhelming, with a year-to-date return of -40.34%, contrasting sharply with the Sensex's positive return of 4.21% over the same period. This further reinforces the notion that Marksans Pharma is currently overvalued in the market.