Is Samrat Pharma overvalued or undervalued?

As of 17 November 2025, the valuation grade for Samrat Pharma has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently deemed undervalued, particularly when considering its PE ratio of 53.08, EV to EBITDA of 22.76, and a Price to Book Value of 1.15. These ratios suggest that despite a high PE, the overall valuation metrics reflect a favorable position relative to its peers.
In comparison to notable competitors, Sun Pharma has a PE ratio of 36.69 and an EV to EBITDA of 24.22, while Divi's Lab is significantly more expensive with a PE of 69.78 and an EV to EBITDA of 52.44. This positions Samrat Pharma favorably within the industry, especially given its PEG ratio of 0.00, indicating potential for growth without the corresponding valuation pressure seen in its peers. Despite recent underperformance against the Sensex, with a year-to-date return of -29.85% compared to the Sensex's 8.72%, the long-term outlook remains promising given the substantial 5-year return of 138.54%.