Is Sanofi India overvalued or undervalued?

As of 19 August 2025, the valuation grade for Sanofi India has moved from fair to expensive, indicating that the company is currently overvalued. The key ratios reflect this assessment, with a PE ratio of 33.44, a Price to Book Value of 13.86, and an EV to EBITDA of 23.08. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Sanofi India's valuation appears high, particularly when looking at Sun Pharma, which has a PE ratio of 34.22, and Cipla, which is considered attractive with a PE of 23.2. The significant disparity in valuations raises concerns about Sanofi India's current price level. Additionally, the company's stock has underperformed relative to the Sensex over various time frames, including a year-to-date decline of 15.12% compared to a 4.49% gain in the index. Overall, Sanofi India is assessed as overvalued in the current market environment.