Is Mono Pharmacare overvalued or undervalued?

As of 6 November 2025, the valuation grade for Mono Pharmacare has moved from expensive to very expensive. This indicates a significant concern regarding its current valuation, suggesting that the company is overvalued. Key ratios reveal a PE Ratio of 11.72, an EV to EBITDA of 11.68, and a PEG Ratio of 0.44, which, while seemingly reasonable in isolation, do not justify the very expensive classification when compared to peers.
In comparison, Sun Pharma has a PE Ratio of 35.02 and an EV to EBITDA of 10.54, while Cipla is rated attractive with a PE of 22.27 and an EV to EBITDA of 5.53. These comparisons highlight that Mono Pharmacare's valuation is not only higher than attractive peers but also does not align with its performance metrics, reinforcing the view that it is overvalued. Additionally, the company's stock has underperformed significantly year-to-date, with a return of -40.84% compared to the Sensex's 7.89%, further supporting the conclusion of overvaluation.