Is Mono Pharmacare overvalued or undervalued?

As of 23 September 2025, Mono Pharmacare's valuation grade has moved from fair to expensive, indicating a shift in its market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 13.87, an EV to EBITDA of 12.54, and a PEG ratio of 0.52, which suggests that while the company may have growth potential, its current price does not adequately reflect its earnings potential compared to its peers.
In comparison to its industry peers, Mono Pharmacare's PE ratio is significantly lower than that of Sun Pharma, which stands at 34.11, and Divi's Lab, which is at 69.64, both categorized as expensive. In contrast, Cipla and Dr. Reddy's Labs are considered attractive with PE ratios of 22.93 and 19.21, respectively. The recent performance of Mono Pharmacare shows a year-to-date decline of 30.01%, which starkly contrasts with the Sensex's gain of 6.45% during the same period, reinforcing the notion that the stock is currently overvalued.