Is Cera Sanitary. overvalued or undervalued?

As of 18 November 2025, the valuation grade for Cera Sanitary has moved from very attractive to attractive, indicating a shift in market perception. The company is currently considered overvalued. Key ratios include a PE Ratio of 29.96, an EV to EBITDA of 22.79, and a ROCE of 35.69%. In comparison, peers such as Kajaria Ceramics have a PE Ratio of 45.23 and an EV to EBITDA of 25.09, while L T Foods shows a more favorable PE of 22.27 and an EV to EBITDA of 14.11.
Despite the attractive valuation grade, Cera Sanitary's stock has underperformed against the Sensex, with a year-to-date return of -25.44% compared to the Sensex's positive return of 8.36%. This suggests that the market may be pricing in challenges ahead, further supporting the conclusion that the stock is currently overvalued.