Is Laxmipati Engg overvalued or undervalued?

As of 28 May 2025, the valuation grade for Laxmipati Engineering has moved from risky to very expensive. The company appears to be overvalued based on its current metrics. Key ratios include a PE ratio of 17.32, an EV to EBITDA of 15.08, and an exceptionally high ROE of 313.51%.
In comparison to its peers, Laxmipati's PE ratio is significantly lower than that of Mazagon Dock at 56.89 and Cochin Shipyard at 76.08, both of which are also classified as very expensive. Despite Laxmipati's strong historical performance, with a 1Y return of 151.76% compared to the Sensex's 7.62%, the current valuation suggests that the stock may not offer further upside at its current price of 185.95.