Is Laxmi Dental overvalued or undervalued?

As of 18 September 2025, Laxmi Dental's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. Despite this change, the company remains overvalued. Key ratios include a PE ratio of 71.43, an EV to EBITDA of 43.46, and a Price to Book Value of 9.16, all of which are significantly higher than industry norms.
When compared to peers, Laxmi Dental's PE ratio is notably higher than that of Poly Medicure at 58.4 and Blue Jet Health at 33.06, both of which are also classified as very expensive. Additionally, the company's ROCE stands at a robust 22.62%, but this does not sufficiently justify its high valuation. Recent stock performance shows a 1-week return of 11.38%, outperforming the Sensex's 1.80%, yet this short-term gain does not alter the overall valuation assessment.