Is Medicamen Biotec overvalued or undervalued?

As of 18 August 2025, the valuation grade for Medicamen Biotec has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 50.82, an EV to EBITDA of 34.06, and a PEG ratio of 2.51, which suggest that while the stock is not undervalued, it is also not excessively priced compared to its historical performance.
In comparison with peers, Medicamen Biotec's PE ratio is significantly higher than that of Cipla, which stands at 23.52, and Dr. Reddy's Labs at 18.57, both of which are rated as attractive. Conversely, Sun Pharma has a PE of 34.14 and is considered expensive, indicating that Medicamen Biotec's valuation is more reasonable within the industry context. Despite recent underperformance against the Sensex, with a year-to-date return of -30.25% compared to the Sensex's 4.01%, the current valuation suggests a stabilization in market perception.