Is Laxmipati Engg overvalued or undervalued?

As of 11 August 2025, Laxmipati Engineering has moved from a risky to a very expensive valuation grade. The company is currently overvalued, reflected in its high PE ratio of 35.58, a Price to Book Value of 26.98, and an EV to EBITDA ratio of 27.31. In comparison, peers such as Mazagon Dock and Cochin Shipyard exhibit even higher valuations with PE ratios of 50.17 and 52.94, respectively, indicating that Laxmipati, while expensive, is still relatively less so within its industry.
Despite its strong performance metrics, including a ROE of 75.83% and a ROCE of 16.59%, the elevated valuation ratios suggest that the stock may not provide adequate returns at its current price of 402.05. Additionally, while Laxmipati has outperformed the Sensex significantly over the past year with a return of 418.44%, the current valuation raises concerns about future growth sustainability.