Is Lambodhara Text. overvalued or undervalued?

As of 1 October 2025, the valuation grade for Lambodhara Textiles has moved from attractive to very attractive. The company is currently considered undervalued based on its financial ratios, including a PE ratio of 19.41, an EV to EBITDA of 6.23, and a PEG ratio of 0.41. These figures suggest that the company's earnings and growth potential are not fully reflected in its current stock price.
When compared to peers, Lambodhara Textiles stands out favorably against K P R Mill Ltd, which has a significantly higher PE ratio of 43.71, indicating it is very expensive, and Vardhman Textile, which has a PE ratio of 13.96, suggesting it is fairly valued. The company's recent performance has also been noteworthy, with a 1-month return of 6.81% compared to a Sensex return of 0.77%, reinforcing the notion that Lambodhara Textiles is currently undervalued in the market.