Is Laxmi Organic overvalued or undervalued?

As of 30 June 2025, Laxmi Organic's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 48.13, an EV to EBITDA of 19.52, and a Price to Book Value of 2.87. In comparison to its peers, P I Industries is considered very expensive with a PE of 37.61, while UPL is attractive with a PE of 39.81, highlighting that Laxmi Organic's valuation is more reasonable within the context of its industry.
Despite the fair valuation, Laxmi Organic has experienced significant declines in stock performance, with a year-to-date return of -18.83%, contrasting sharply with the Sensex's positive return of 7.00% during the same period. This disparity may suggest that the market has not fully recognized the company's fair valuation relative to its peers, potentially indicating an opportunity for investors.