Is Novartis India overvalued or undervalued?

Nov 01 2025 08:05 AM IST
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As of October 31, 2025, Novartis India is considered overvalued with a PE ratio of 20.06, underperforming the Sensex with a year-to-date return of -5.85%, while its peers have higher or more attractive valuations.
As of 31 October 2025, Novartis India has moved from a fair to an expensive valuation grade. The company is currently considered overvalued. Key ratios include a PE ratio of 20.06, a Price to Book Value of 0.28, and a PEG Ratio of 0.91.

When compared to peers, Sun Pharma has a significantly higher PE ratio of 35.35, while Dr. Reddy's Labs, which is rated attractive, has a lower PE ratio of 17.34. Notably, Novartis India's stock has underperformed against the Sensex, with a year-to-date return of -5.85% compared to the Sensex's 7.42%. This further supports the conclusion that Novartis India is overvalued in the current market context.
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