Is Unichem Labs. overvalued or undervalued?

As of 1 October 2025, Unichem Labs has moved from an attractive to a very attractive valuation grade. The company is currently considered undervalued, particularly when compared to its peers in the pharmaceuticals and biotechnology sector. Key ratios include a PE ratio of 27.22, an EV to EBITDA of 15.15, and a PEG ratio of 0.04, which suggests that the stock is priced favorably relative to its growth potential.
In comparison, Sun Pharma has a PE ratio of 34.22 and an EV to EBITDA of 23.17, indicating it is expensive relative to Unichem Labs. Similarly, Divi's Lab is categorized as very expensive with a PE of 65.66. Despite recent underperformance against the Sensex, with a year-to-date return of -34.26% compared to the Sensex's 3.64%, the valuation metrics suggest that Unichem Labs presents a compelling investment opportunity at its current price of 483.20.