Is Natural Capsules overvalued or undervalued?

Nov 17 2025 08:06 AM IST
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As of November 14, 2025, Natural Capsules is considered overvalued and risky, with concerning financial metrics such as a PE ratio of -16.93 and an EV to EBITDA of 37.39, significantly underperforming compared to competitors like Sun Pharma and Cipla, and reflecting a negative stock performance of -28.65% over the past year.
As of 14 November 2025, the valuation grade for Natural Capsules has moved from expensive to risky, indicating a significant shift in the company's perceived value. Based on the analysis, Natural Capsules is currently considered overvalued. The company displays a PE ratio of -16.93, an EV to EBITDA of 37.39, and a Price to Book Value of 0.87, which are concerning metrics compared to its peers.

In comparison to notable competitors, Sun Pharma has a PE ratio of 36.49 and an EV to EBITDA of 24.09, while Cipla maintains a more attractive PE ratio of 22.72 and an EV to EBITDA of 16.08. These ratios highlight that Natural Capsules is not only underperforming relative to its peers but also suggests a lack of investor confidence reflected in its negative stock performance over the past year, with a return of -28.65% compared to a 9.00% gain in the Sensex.
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