Is Laxmi Organic overvalued or undervalued?

As of 16 July 2025, Laxmi Organic's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued, with a PE ratio of 49.48, an EV to EBITDA ratio of 20.06, and a Price to Book Value of 2.95. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Laxmi Organic's PE ratio is higher than that of P I Industries at 37.38 and BASF India at 45.6, both of which are also considered expensive. Notably, UPL stands out as a more attractive option with a PE ratio of 40.4 and a significantly lower EV to EBITDA of 8.63. Additionally, Laxmi Organic's recent stock performance has been underwhelming, with a year-to-date return of -16.57%, contrasting sharply with the Sensex's positive return of 5.75% during the same period, further reinforcing the perception of overvaluation.