Is Laxmi Cotspin overvalued or undervalued?

As of 3 October 2025, Laxmi Cotspin's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of -38.22, an EV to EBITDA of 20.87, and a Price to Book Value of 0.69. These ratios suggest that while the company is not overvalued, it also does not present a compelling buying opportunity at this time.
In comparison to its peers, Laxmi Cotspin's valuation metrics stand out, particularly when contrasted with K P R Mill Ltd, which has a PE ratio of 44.24, and Trident, with a PE ratio of 33.41. The negative ROCE of -5.20% and ROE of -3.99% further highlight the challenges the company faces. Notably, Laxmi Cotspin has underperformed the Sensex in recent periods, with a year-to-date return of -29.24% compared to the Sensex's 5.28%, reinforcing the cautious outlook on its valuation.