Is Dhanlaxmi Cotex overvalued or undervalued?

As of 23 October 2025, the valuation grade for Dhanlaxmi Cotex has moved from expensive to fair. Based on the current analysis, the company appears to be fairly valued. Key ratios include a PE ratio of 19.11, a price to book value of 1.01, and an EV to EBITDA of -66.22, which indicates some unusual financial metrics that warrant further scrutiny.
In comparison to peers, Dhanlaxmi Cotex's PE ratio is significantly lower than Bajaj Finance's 39.07 and higher than Life Insurance's 11.68, suggesting it is positioned reasonably within its industry. The PEG ratio of 0.50 also indicates potential for growth relative to its price. Notably, while the stock has underperformed against the Sensex in the short term, it has shown strong returns over a longer horizon, with a 3-year return of 102.74% compared to the Sensex's 42.57%.