Is Medicamen Biotec overvalued or undervalued?

As of 15 September 2025, Medicamen Biotec has moved from an expensive to a fair valuation grade. The company is currently fairly valued, with a PE ratio of 48.74, an EV to EBITDA ratio of 32.75, and a PEG ratio of 2.41. In comparison to its peers, Sun Pharma has a PE ratio of 33.52 and an EV to EBITDA of 22.67, while Cipla is valued more attractively with a PE of 23.18 and an EV to EBITDA of 16.32.
Despite the recent valuation adjustment, Medicamen Biotec's stock performance has lagged behind the Sensex, with a year-to-date return of -32.65% compared to the Sensex's 4.67%. This underperformance, combined with its current ratios, suggests that while the stock is fairly valued, there may be concerns regarding its growth prospects and operational efficiency, as evidenced by its low ROCE of 2.79% and ROE of 4.08%.