katarasmin in which, dēśē place, naḥ for us, āśramaḥ hermitage, sammataḥ suitable, bhavati will be, kānanē in this forest, sarvataḥ all over, dṛṣṭiḥ vision, cāryatām cast (your sight) , nipuṇaḥ good at deciding, asi you are, hi indeed.
O Lakshmana! cast your eyes all around the forest for a suitable place (for building a hermitage). Indeed, you are good at judging things.