Is SMS Pharma. overvalued or undervalued?

As of 29 August 2025, the valuation grade for SMS Pharma has moved from attractive to fair. The company appears to be fairly valued based on its current metrics. The PE ratio stands at 28.63, the Price to Book Value is 3.27, and the EV to EBITDA ratio is 16.32, which indicates a moderate valuation compared to its peers.
In comparison to its industry peers, SMS Pharma's PE ratio is lower than Sun Pharma's 33.34 and Divi's Lab's 70.28, both of which are considered expensive. However, it is higher than Cipla's attractive PE of 23.82 and Dr. Reddy's Labs' attractive PE of 18.56. Notably, SMS Pharma's PEG ratio of 1.27 suggests that it is reasonably priced for its growth potential. Despite a recent underperformance relative to the Sensex over the past year, where it declined by 30.21% compared to the Sensex's 2.83% decline, its long-term performance over three and five years remains strong, indicating resilience in its valuation.