Is Natural Capsules overvalued or undervalued?

Aug 08 2025 08:01 AM IST
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As of August 7, 2025, Natural Capsules is considered very attractive and undervalued with a PE ratio of -40.83, a price-to-book value of 0.97, and an EV to EBITDA ratio of 24.17, especially when compared to competitors like Sun Pharma and Cipla, and has shown resilience with a 1-week return of 1.67% against a -0.69% return for the Sensex.
As of 7 August 2025, the valuation grade for Natural Capsules has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, particularly in light of its PE ratio of -40.83, a price-to-book value of 0.97, and an EV to EBITDA ratio of 24.17. These ratios suggest that the market may not be fully recognizing the potential of Natural Capsules compared to its peers.

In comparison to notable competitors, Sun Pharma has a PE ratio of 33.44, indicating it is expensive, while Cipla, which is rated attractive, has a PE ratio of 22.34. The stark contrast in valuation metrics highlights Natural Capsules' potential upside. Additionally, the company's recent stock performance has shown resilience, with a 1-week return of 1.67% compared to a -0.69% return for the Sensex, reinforcing the notion that it may be undervalued in the current market landscape.
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