Is Saroja Pharma In overvalued or undervalued?

As of 6 October 2025, Saroja Pharma's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently deemed overvalued based on its key financial ratios, including a PE ratio of 17.45, an EV to EBITDA of 9.09, and a PEG ratio of 1.02. In comparison to its peers, Sun Pharma has a significantly higher PE ratio of 34.56, while Cipla, which is rated attractive, has a PE ratio of 22.72, further highlighting Saroja Pharma's relative overvaluation.
Given these metrics and the recent performance, Saroja Pharma appears overvalued in the current market context. The company's stock has underperformed the Sensex over the past year, with a return of -22.06% compared to the Sensex's modest gain of 0.25%. This underperformance, coupled with the elevated valuation ratios, reinforces the conclusion that Saroja Pharma is not a compelling investment at its current price of 44.70.