Is Sigachi Indust. overvalued or undervalued?

As of 16 June 2025, the valuation grade for Sigachi Industries has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently deemed overvalued. Key ratios include a PE ratio of 28.22, an EV to EBITDA of 20.12, and a PEG ratio of 1.57, all of which suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Sigachi Industries' PE ratio is lower than Sun Pharma's 35.37 but significantly higher than Cipla's 23.39, which is categorized as attractive. Additionally, while Divi's Laboratories is also classified as very expensive with a PE of 81.02, it highlights the relative valuation concerns surrounding Sigachi. Despite recent stock performance showing a 33.13% return over the past month compared to a -0.65% return for the Sensex, the overall valuation metrics suggest that investors may be paying too much for future growth potential.