Is Dalmia BharatLtd overvalued or undervalued?

As of 7 July 2025, Dalmia Bharat Ltd has moved from a very expensive to an expensive valuation grade. The company is currently considered overvalued based on its financial ratios, with a PE ratio of 52.57, an EV to EBITDA of 17.22, and a Price to Book Value of 2.32. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Dalmia Bharat Ltd's PE ratio is higher than Grasim Industries, which stands at 47.49, and significantly lower than Shree Cement's 100.1. While Dalmia Bharat's PEG ratio is at 0.00, indicating no growth expectations, its return metrics, such as a ROCE of 5.82% and ROE of 4.42%, reflect underperformance relative to industry standards. Notably, the stock has outperformed the Sensex year-to-date with a return of 21.89% compared to the Sensex's 6.79%, but this does not mitigate its current overvaluation status.