Is Sequent Scien. overvalued or undervalued?

As of 29 October 2025, the valuation grade for Sequent Scientific has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 155.20, an EV to EBITDA of 33.49, and a Price to Book Value of 7.59. These figures suggest that the stock is trading at a significant premium compared to its earnings and book value.
In comparison to its peers, Sequent Scientific's valuation appears particularly high. For instance, Sun Pharma has a PE ratio of 35.9 and an EV to EBITDA of 24.38, while Cipla, considered attractive, has a PE ratio of 23.68 and an EV to EBITDA of 16.69. This stark contrast highlights that Sequent Scientific is not only overvalued relative to its industry but also underperforming in terms of return metrics, with a ROCE of 8.54% and ROE of 3.66%. Despite recent stock performance showing a return of 22.51% over the past year compared to the Sensex's 5.76%, the overall valuation metrics suggest that the stock may not be a prudent investment at this price level.