Is Medico Remedies overvalued or undervalued?

As of 30 June 2025, the valuation grade for Medico Remedies has moved from fair to expensive, indicating that the company is currently overvalued. The key ratios supporting this assessment include a PE Ratio of 34.33, an EV to EBITDA of 23.89, and a PEG Ratio of 1.61. Compared to its peers, Medico Remedies' valuation appears high, particularly when contrasted with Cipla, which has a PE of 23.06, and Dr. Reddy's Labs, with a PE of 18.94, both of which are considered attractive.
In light of these metrics, Medico Remedies is deemed overvalued relative to its peers in the pharmaceuticals and biotechnology sector. The company's recent stock performance has been underwhelming, with a year-to-date return of -23.31%, significantly lagging behind the Sensex's return of 7.00% during the same period. This further reinforces the notion that Medico Remedies may not be a favorable investment at its current price level.