Is Senores Pharma. overvalued or undervalued?

As of 18 September 2025, the valuation grade for Senores Pharma has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently deemed overvalued, with a PE ratio of 56.49, an EV to EBIT of 44.43, and an EV to EBITDA of 36.09. These ratios are considerably higher than its peers, such as Sun Pharma, which has a PE ratio of 34.46 and an EV to EBITDA of 23.34, and Cipla, which boasts a more attractive PE ratio of 23.65 and an EV to EBITDA of 16.67.
In comparison to its industry, Senores Pharma's financial metrics suggest that it is not only overvalued but also lacks competitive returns, as evidenced by its ROE of 7.45% and ROCE of 10.18%. While the stock has outperformed the Sensex year-to-date with a return of 25.84% compared to the Sensex's 6.24%, the overall valuation metrics indicate that investors may be paying a premium that is not justified by the company's financial performance.