Is Dalmia BharatLtd overvalued or undervalued?

As of 9 July 2025, the valuation grade for Dalmia Bharat Ltd has moved from expensive to very expensive. The company is currently overvalued, with a PE ratio of 53.46, an EV to EBITDA of 17.50, and a Price to Book Value of 2.36. Compared to its peers, UltraTech Cement has a higher PE ratio of 58.36, while Grasim Industries, which is considered attractive, has a lower PE of 47.71, indicating that Dalmia Bharat Ltd is trading at a premium relative to some competitors.
The company's return metrics also highlight its overvaluation, with a ROCE of 5.82% and a ROE of 4.42%, which are relatively low in comparison to the high valuation ratios. Additionally, while Dalmia Bharat has outperformed the Sensex on a year-to-date basis with a return of 23.96% versus the Sensex's 6.91%, this performance does not justify its very expensive valuation grade.