Is Sequent Scien. overvalued or undervalued?

As of 3 September 2025, Sequent Scientific's valuation grade has moved from attractive to fair, indicating a shift in market perception. The company is currently fairly valued, with a PE ratio of 128.21, an EV to EBITDA of 28.09, and a PEG ratio of 0.11. In comparison to peers, Sun Pharma has a PE of 33.05 and an EV to EBITDA of 22.33, while Cipla shows a more attractive PE of 23.66 and an EV to EBITDA of 16.68, highlighting that Sequent is significantly more expensive relative to these competitors.
Despite its fair valuation, Sequent's recent stock performance has been relatively strong, with a 1-week return of 1.23% compared to a Sensex decline of 0.27%. However, over the longer term, the stock has underperformed the Sensex, with a 5-year return of 35.84% versus the Sensex's 106.63%. This suggests that while the company may be currently fairly valued, its high valuation ratios could limit future upside potential compared to its peers.