Is Dhanlaxmi Crop overvalued or undervalued?

As of 15 September 2025, the valuation grade for Dhanlaxmi Crop has moved from fair to very attractive, indicating a significant positive shift in its valuation outlook. The company is currently considered undervalued, especially when compared to its peers. Key ratios include a PE ratio of 8.28, an EV to EBITDA of 5.28, and a ROCE of 30.83%, which highlight its strong profitability relative to its valuation.
In the peer comparison, Dhanlaxmi Crop stands out with a lower PE ratio than Kaveri Seed Co. at 18.71 and Nath Bio-Genes at 7.62, suggesting that Dhanlaxmi is trading at a discount despite its attractive fundamentals. Additionally, the EV to Sales ratio of 0.50 further emphasizes its undervaluation compared to the industry. Recent stock performance shows a decline of 38.68% year-to-date, contrasting sharply with the Sensex's 6.02% gain, reinforcing the narrative that the stock may be undervalued relative to its potential.