Is Natural Capsules overvalued or undervalued?

As of 14 November 2025, the valuation grade for Natural Capsules has moved from expensive to risky, indicating a significant shift in its perceived value. The company is currently assessed as overvalued, given its negative PE ratio of -16.93, an EV to EBITDA of 37.39, and a ROE of just 0.27%. These figures suggest that the company is struggling to generate returns relative to its equity and is not performing well compared to its peers.
In comparison with notable competitors, Sun Pharma has a PE ratio of 36.49 and an EV to EBITDA of 24.09, while Cipla boasts a PE of 22.72 and an EV to EBITDA of 16.08, both of which highlight the disparity in valuation metrics. Additionally, Natural Capsules has underperformed significantly against the Sensex, with a year-to-date return of -27.99% compared to the Sensex's 8.22%. This further reinforces the notion that Natural Capsules is overvalued in the current market context.