Is Welcure Drugs overvalued or undervalued?

As of 4 July 2025, the valuation grade for Welcure Drugs has moved from expensive to fair. The company appears to be fairly valued at this time. Key ratios include a PE ratio of 31.35, an EV to EBITDA ratio of 54.51, and a PEG ratio of 0.12, indicating potential growth relative to its price.
In comparison to its peers, Welcure Drugs' PE ratio is lower than Sun Pharma's 35.2 and significantly lower than Divi's Lab's 83.9, which are both categorized as expensive. Notably, while Welcure Drugs has a high ROE of 328.36%, its ROCE stands at -17.42%, suggesting challenges in capital efficiency. Over the past year, the stock has outperformed the Sensex with a return of 111.38% compared to the Sensex's 4.23%, reinforcing its current valuation stance.