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. Based on the analysis, the company appears to be overvalued. The current PE ratio stands at -16.93, while the EV to EBITDA ratio is 37.39, and the Price to Book Value is 0.87, all suggesting that the company's financial metrics are not aligned with its market valuation.
When compared to peers, Natural Capsules' valuation is starkly different from companies like Sun Pharma, which has a PE ratio of 36.49, and Cipla, with a PE of 22.72. This disparity highlights the potential overvaluation of Natural Capsules, especially considering its negative PE ratio and low ROE of 0.27%. Additionally, the stock has underperformed significantly against the Sensex, with a year-to-date return of -27.99% compared to the Sensex's 8.22%, reinforcing the notion that the company may not be a sound investment at its current price of 195.50.