Is Parnax Lab overvalued or undervalued?

As of 14 February 2025, Parnax Lab's valuation grade has moved from fair to attractive, indicating a shift in perception regarding its worth. The company is currently considered undervalued, with a PE ratio of 10.87, an EV to EBITDA of 7.17, and a PEG ratio of 0.54, all of which suggest that the stock is trading at a discount compared to its earnings growth potential.
In comparison to its peers, Parnax Lab's valuation metrics stand out favorably; for instance, PTC India, which is rated very attractive, has a PE ratio of 9.02, while MMTC is deemed risky with a PE ratio of 119.39. This positions Parnax Lab as a compelling investment opportunity within the pharmaceuticals and biotechnology sector. Despite a recent dip in stock performance relative to the Sensex, with a year-to-date return of -35.71% compared to the Sensex's 5.59%, the long-term outlook remains positive with a 5-year return of 503.35%.