Is Medicamen Organ. overvalued or undervalued?

As of 10 October 2025, Medicamen Organ. has moved from a fair to an expensive valuation grade. The company is currently considered overvalued. Key ratios include a PE ratio of 12.83, an EV to EBITDA of 9.15, and a ROCE of 12.71%.
In comparison to peers, Medicamen's PE ratio is significantly lower than that of Sun Pharma. Inds. at 34.96 and Divi's Lab. at 74.58, both of which are classified as expensive and very expensive, respectively. Meanwhile, Cipla, with a PE of 23.39, is rated as attractive, indicating that Medicamen's valuation does not align favorably within its competitive landscape. Notably, while Medicamen has shown a strong short-term stock return of 7.82% over the past week compared to the Sensex's 1.57%, its year-to-date performance remains concerning at -33.49%, highlighting potential overvaluation risks.