Is Unichem Labs. overvalued or undervalued?

As of 4 August 2025, the valuation grade for Unichem Labs. has moved from very attractive to attractive, indicating a shift in market perception. The company appears to be fairly valued at present. Key ratios include a PE ratio of 31.74, an EV to EBITDA of 17.43, and a PEG ratio of 0.05, which suggests strong growth potential relative to its price.
In comparison to its peers, Unichem Labs. has a lower PE ratio than Sun Pharma. (34.25) and Divi's Lab. (78.73), both of which are considered expensive. However, it is on par with Cipla, which has a PE of 22.7 and is also rated attractive. Notably, Unichem Labs. has underperformed against the Sensex over various time frames, with a year-to-date return of -23.34% compared to the Sensex's 3.69%, which may reflect broader market sentiment rather than company-specific issues.