Is Piramal Pharma overvalued or undervalued?

As of 10 June 2025, Piramal Pharma's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 300.99, an EV to EBITDA of 21.98, and a price to book value of 3.38. In comparison to its peers, Sun Pharma has a significantly lower PE ratio of 35.45 and an EV to EBITDA of 25.06, while Cipla, rated as attractive, shows a PE ratio of 23.11 and an EV to EBITDA of 16.02, highlighting the relative overvaluation of Piramal Pharma.
Despite the recent shift in valuation, Piramal Pharma's performance has been mixed, with a year-to-date return of -22.37% compared to the Sensex's 5.44%. This underperformance may suggest that while the company is now fairly valued, it may still face challenges in the market. Overall, the current valuation metrics and peer comparisons indicate that Piramal Pharma is fairly valued within its industry context.