Is Saroja Pharma In overvalued or undervalued?

As of 3 October 2025, Saroja Pharma's valuation grade has moved from expensive to fair. The company is currently fairly valued, with a PE ratio of 16.71, a Price to Book Value of 1.10, and an EV to EBITDA ratio of 8.84. In comparison to its peers, Sun Pharma has a significantly higher PE ratio of 34.04, indicating it is expensive, while Dr. Reddy's Labs, which is considered attractive, has a PE ratio of 18.34.
Saroja Pharma's financial metrics suggest it is positioned well within its industry, especially with a PEG ratio of 0.98, indicating potential growth relative to its earnings. However, the company's stock has underperformed against the Sensex, with a year-to-date return of -28.67% compared to the Sensex's 5.28%. This performance may reflect market sentiment rather than the underlying valuation, reinforcing the view that Saroja Pharma is fairly valued at its current price of 42.80.