Is Novartis India overvalued or undervalued?

As of 4 November 2025, the valuation grade for Novartis India has moved from expensive to fair. The company is currently fairly valued, with a PE ratio of 19.90, a Price to Book Value of 0.27, and a PEG ratio of 0.91. Notably, the EV to EBITDA ratio stands at -40.09, indicating significant negative earnings before interest, taxes, depreciation, and amortization, which is an outlier compared to typical industry standards.
In comparison with peers, Novartis India’s PE ratio is lower than Sun Pharma's 35.41 and Divi's Lab's 78.59, both of which are classified as expensive. On the other hand, companies like Dr. Reddy's Labs, with a PE ratio of 17.36, and Cipla at 22.35, are more attractively valued. The recent stock performance shows that Novartis India has underperformed the Sensex over the past year, with a return of -19.75% compared to the Sensex's 5.94%, reinforcing the notion of its current fair valuation amidst broader market trends.