Is Natural Capsules overvalued or undervalued?
As of August 6, 2025, Natural Capsules is considered attractive but overvalued, with a PE ratio of -40.95 and an EV to EBIT of 134.79, significantly higher than peers like Sun Pharma and Cipla, and has underperformed with an 18.91% year-to-date decline compared to a 3.08% increase in the Sensex.
As of 6 August 2025, the valuation grade for Natural Capsules has moved from very attractive to attractive. The company appears to be overvalued based on its financial ratios, particularly with a PE ratio of -40.95 and an EV to EBIT of 134.79, which are significantly higher than its peers. The Price to Book Value stands at 0.98, indicating a near parity with its book value, but the overall financial performance metrics suggest caution.In comparison to its peers, Natural Capsules' valuation metrics are starkly different; for instance, Sun Pharma has a PE ratio of 33.34 and an EV to EBITDA of 22.54, while Cipla shows a PE of 22.25 and an EV to EBITDA of 15.63, both indicating a more favorable valuation. The company’s return performance has also been underwhelming, with a year-to-date decline of 18.91% compared to a 3.08% increase in the Sensex, reinforcing the notion that Natural Capsules is currently overvalued.
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