Is Themis Medicare overvalued or undervalued?

As of 16 May 2025, Themis Medicare's valuation grade has moved from fair to expensive, indicating a shift in its perceived value. The company is currently overvalued based on its financial ratios, with a PE ratio of 42.27, an EV to EBITDA ratio of 27.14, and a Price to Book Value of 3.13. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Themis Medicare's PE ratio is significantly higher than that of Cipla at 22.99 and Dr. Reddy's Labs at 19.49, both of which are considered attractive. Additionally, the company's PEG ratio stands at 0.00, which raises concerns about growth potential relative to its valuation. While Themis has shown strong returns over the past five years, outperforming the Sensex, its recent performance has been underwhelming, with a year-to-date decline of 44.92% compared to a 5.63% increase in the Sensex. This further reinforces the conclusion that Themis Medicare is currently overvalued.