Is Dalmia BharatLtd overvalued or undervalued?

Jul 15 2025 08:03 AM IST
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As of July 14, 2025, Dalmia Bharat Ltd is considered overvalued with a valuation grade of expensive, reflected in its high PE ratio of 52.99 and EV to EBITDA of 17.35, despite outperforming the Sensex with a YTD return of 22.86%.
As of 14 July 2025, the valuation grade for Dalmia Bharat Ltd has moved from very expensive to expensive. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 52.99, an EV to EBITDA of 17.35, and a Price to Book Value of 2.34, which are significantly higher than some peers in the industry.

In comparison, UltraTech Cement has a PE ratio of 58.05 and an EV to EBITDA of 30.83, while Grasim Industries is more attractively valued with a PE of 47.69 and an EV to EBITDA of 12.43. Despite Dalmia Bharat's recent stock performance, which outpaced the Sensex with a YTD return of 22.86% compared to 5.27%, the high valuation ratios suggest that the stock is not justified at its current price level.
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