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 appears to be overvalued based on its current financial ratios, including a PE ratio of 36.30, an EV to EBITDA ratio of 27.77, and a PEG ratio of 0.05. In comparison, peers such as Mazagon Dock and Cochin Shipyard are rated as very expensive with PE ratios of 49.05 and 52.24, respectively, indicating that Laxmipati is trading at a lower valuation despite its high ratios.
Given these metrics, Laxmipati Engineering is considered overvalued in the current market context. The company's strong returns, including a 429.01% increase over the past year compared to a mere 1.23% for the Sensex, suggest that market sentiment may be overly optimistic. However, the high valuation ratios relative to its peers raise concerns about sustainability, reinforcing the view that the stock is not a sound investment at its current price of 410.25.