Is Laxmipati Engg overvalued or undervalued?

As of 8 August 2025, Laxmipati Engineering's valuation grade has moved from very expensive to risky, indicating a shift in market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 36.30, an EV to EBITDA ratio of 27.77, and a PEG ratio of 0.05, which suggests that while the company has strong growth potential, its current price may not be justified by its earnings growth.
When compared to peers, Laxmipati's valuation appears high, especially against Mazagon Dock with a PE of 49.05 and Cochin Shipyard at 52.24, both categorized as very expensive. Despite its strong performance, including a remarkable 429.01% return over the past year compared to the Sensex's 1.23%, the high valuation ratios indicate that Laxmipati Engineering may not be a prudent investment at its current price level.