Is Source Natural overvalued or undervalued?

Nov 09 2025 08:09 AM IST
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As of November 7, 2025, Source Natural is fairly valued with a PE ratio of 29.64, lower than some peers like Sun Pharma and Divi's Lab, but higher than Cipla, and has underperformed the Sensex with a return of -41.04% over the past year.
As of 7 November 2025, the valuation grade for Source Natural has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics, with a PE ratio of 29.64, an EV to EBIT of 20.54, and a PEG ratio of 0.46. These ratios suggest that while the company is not undervalued, it is also not significantly overvalued compared to its peers.

In comparison to its industry peers, Source Natural's PE ratio is lower than that of Sun Pharma (35.17) and Divi's Lab (71.11), both of which are considered expensive. Conversely, Source Natural's valuation is more favorable than that of Cipla, which has a PE of 22.33 and is rated attractive. Additionally, the stock has underperformed the Sensex over the past year, with a return of -41.04% compared to the Sensex's 4.62%, reinforcing the notion that the stock may be fairly valued in light of its recent performance.
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