Is Unichem Labs. overvalued or undervalued?

As of 1 October 2025, the valuation grade for Unichem Labs. has moved from attractive to very attractive, indicating a strong improvement in its perceived value. The company is currently considered undervalued. 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 prospects.
In comparison to its peers, Unichem Labs. stands out with a lower PE ratio than Sun Pharma (34.22) and Divi's Lab (65.66), both of which are classified as expensive. Additionally, its EV to EBITDA ratio is more favorable than that of Mankind Pharma (30.84) and Torrent Pharma (32.09), which are categorized as very expensive. Despite recent stock performance lagging behind the Sensex, particularly with a year-to-date return of -34.26% compared to the Sensex's 3.64%, the underlying valuation metrics suggest that Unichem Labs. presents a compelling investment opportunity.