Is Laxmipati Engg overvalued or undervalued?

As of 8 August 2025, the valuation grade for Laxmipati Engineering has moved from very expensive to risky. The company is currently assessed as overvalued. Key ratios include a PE ratio of 36.30, an EV to EBITDA of 27.77, and a PEG ratio of 0.05, which suggests that despite high earnings multiples, the growth expectations are not being met.
In comparison to its peers, Laxmipati's PE ratio is significantly lower than that of Mazagon Dock at 49.05 and Cochin Shipyard at 52.24, both categorized as very expensive. While Laxmipati's ROE stands at a remarkable 75.83%, indicating strong profitability, the overall valuation metrics suggest that the stock is trading at a premium relative to its growth prospects. Notably, Laxmipati has outperformed the Sensex significantly over the past year with a return of 429.01% compared to the Sensex's 1.23%, which may further complicate its valuation narrative.