Is Laxmi Organic overvalued or undervalued?

As of 28 July 2025, Laxmi Organic has moved from a fair to an expensive valuation grade. The company is currently considered overvalued, with a PE ratio of 49.87, an EV to EBIT ratio of 36.33, and an EV to EBITDA ratio of 20.22. These figures significantly exceed those of its peers, such as UPL, which has a PE ratio of 43.97 and an EV to EBITDA ratio of 9.21, and Sharda Cropchem, with a PE ratio of 23.63 and an EV to EBITDA ratio of 13.02.
Despite a recent uptick in stock performance, with a 1-week return of 4.23% compared to a -1.59% return for the Sensex, the overall trend shows that Laxmi Organic's stock has underperformed over longer periods, including a year-to-date decline of 15.91% against a 3.52% increase in the Sensex. This further reinforces the conclusion that Laxmi Organic is currently overvalued in the specialty chemicals sector.