Is Dhanlaxmi Cotex overvalued or undervalued?

As of 26 June 2025, the valuation grade for Dhanlaxmi Cotex has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently deemed undervalued, with a PE ratio of 13.59, a Price to Book Value of 1.11, and an EV to EBITDA ratio of 73.16. These metrics suggest that the stock is trading at a reasonable valuation compared to its earnings potential.
In comparison to its peers, Dhanlaxmi Cotex's PE ratio is more favorable than Life Insurance, which stands at 12.52, while it remains significantly lower than Bajaj Finance at 35.54, which is categorized as very expensive. Additionally, the PEG ratio of 0.11 highlights the stock's growth potential relative to its price, further supporting the undervaluation narrative. Notably, Dhanlaxmi Cotex has outperformed the Sensex over the past year, with a return of 145.48% compared to the Sensex's 6.46%, reinforcing its attractiveness as an investment opportunity.