Is Sigachi Indust. overvalued or undervalued?

As of 12 May 2025, the valuation grade for Sigachi Industries has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued, with a PE ratio of 26.61, a Price to Book Value of 3.08, and an EV to EBITDA ratio of 19.00. These metrics suggest that the stock is priced higher relative to its earnings and assets compared to its peers.
In comparison to notable competitors, Sun Pharmaceutical Industries has a significantly higher PE ratio of 35.25, while Cipla Ltd. presents a more attractive valuation with a PE of 22.99. This highlights that Sigachi's valuation is less favorable when placed alongside these peers. Additionally, while Sigachi has shown strong short-term performance with a 39.15% return over the past month compared to the Sensex's 3.81%, its longer-term performance has lagged, with a 1-year return of -11.05% versus the Sensex's 7.55%. This further reinforces the conclusion that Sigachi Industries is currently overvalued.