Is Laxmi Cotspin overvalued or undervalued?

As of 1 October 2025, Laxmi Cotspin's valuation grade has moved from fair to attractive, indicating a potential shift in investor sentiment. The company appears to be undervalued, particularly when considering its current PE ratio of -37.96, a Price to Book Value of 0.69, and an EV to EBITDA of 20.80. These ratios suggest that the market may not fully recognize the company's underlying value, especially in comparison to peers like K P R Mill Ltd, which has a PE ratio of 43.71, and Trident, with a PE ratio of 33.1.
Despite recent stock performance lagging behind the Sensex, with a year-to-date decline of 29.71% compared to a 5.04% increase in the index, the attractive valuation grade and the low Price to Book Value indicate that Laxmi Cotspin may offer a compelling investment opportunity. The company's EV to Sales ratio of 0.46 further supports the notion that it is undervalued relative to its peers in the garments and apparel industry.