Is Unichem Labs. overvalued or undervalued?

As of 12 November 2025, the valuation grade for Unichem Labs. has moved from very attractive to attractive, indicating a shift in perception regarding its value. The company is currently assessed as undervalued, particularly in comparison to its peers. Key ratios include a PE ratio of 22.88, an EV to EBITDA of 14.21, and a PEG ratio of 0.05, which suggests strong growth potential relative to its price.
In the peer comparison, Unichem Labs. stands out against companies like Sun Pharma, which has a PE ratio of 35.94, and Cipla, with a PE ratio of 22.56. This positions Unichem Labs. favorably within the industry, especially considering its attractive valuation amidst peers that are deemed expensive. Despite recent stock performance lagging behind the Sensex over the past year, the long-term outlook remains positive, with a notable 5-year return of 105.39% compared to the Sensex's 94.82%.