Is Quest Laborato. overvalued or undervalued?

As of 16 September 2025, the valuation grade for Quest Laboratories has moved from fair to very attractive, indicating a significant improvement in its perceived value. The company is currently assessed as undervalued, especially when considering its key financial ratios. The PE ratio stands at 11.35, while the EV to EBITDA is 8.47, and the ROCE is a strong 24.38%, showcasing efficient capital utilization.
In comparison to its peers, Quest Laboratories appears favorably positioned. For instance, Sun Pharma has a PE ratio of 33.64, categorizing it as expensive, while Cipla, deemed attractive, has a PE of 23.31. The PEG ratio for Quest is notably at 0.00, suggesting that it may be undervalued relative to its growth potential. Despite recent stock performance lagging behind the Sensex, with a year-to-date decline of 21.27% compared to a 6.74% gain in the index, the underlying financial metrics support a bullish outlook for Quest Laboratories.