Is Sigachi Indust. overvalued or undervalued?

As of 24 June 2025, the valuation grade for Sigachi Industries has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios include a PE ratio of 30.66, an EV to EBITDA of 21.82, and a PEG ratio of 10.28, all of which suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Sigachi's PE ratio is lower than that of Sun Pharma (34.85) but significantly higher than Cipla (23.03), which is rated as attractive. Additionally, Divi's Lab, also classified as very expensive, has a much higher PE ratio of 79.47, further highlighting the premium at which Sigachi is trading. Despite a strong recent performance, with a 1-month return of 28.17% compared to the Sensex's 0.41%, the overall valuation metrics suggest that investors should approach Sigachi Industries with caution given its current overvaluation status.