Is Nectar Lifesci. overvalued or undervalued?

As of 8 July 2025, Nectar Lifesciences has moved from an attractive to a risky valuation grade. The company appears to be overvalued given its negative PE ratio of -3.66, an EV to EBIT of -11.55, and an EV to EBITDA of -38.76. These figures indicate significant financial distress compared to its peers, such as Sun Pharma, which has a PE ratio of 35.1 and an EV to EBITDA of 24.8, and Cipla, with a PE of 22.8 and an EV to EBITDA of 15.79.
The stark contrast in valuation metrics highlights Nectar Lifesciences' precarious position within the pharmaceuticals and biotechnology industry. Additionally, the company's stock has underperformed significantly against the Sensex, with a year-to-date return of -52.49% compared to the Sensex's 7.13%. This further reinforces the conclusion that Nectar Lifesciences is overvalued in its current state.