Is TTK Healthcare overvalued or undervalued?

As of 23 May 2025, TTK Healthcare's valuation grade has moved from fair to attractive, indicating a potential undervaluation. The company is currently assessed as undervalued, with a PE ratio of 24.40, an EV to EBITDA of 27.65, and a PEG ratio of 1.95. Compared to peers, TTK Healthcare's PE ratio is lower than Sun Pharma's 35.25 and Divi's Lab's 79.33, both of which are considered expensive, while it is more favorable than Cipla's PE of 22.99 and Dr. Reddy's Labs at 19.49, which are also attractive.
TTK Healthcare's recent stock performance has lagged behind the Sensex, with a year-to-date return of -13.81% compared to the Sensex's 5.59%. However, its strong historical performance over the past five years, with a return of 177.50%, suggests a resilient growth trajectory. Overall, the combination of favorable valuation ratios and peer comparisons supports the conclusion that TTK Healthcare is currently undervalued.