Is Deccan Cements overvalued or undervalued?

As of 29 August 2025, Deccan Cements has moved from an expensive to a fair valuation grade. The company is currently fairly valued, with a PE ratio of 70.60, an EV to EBITDA ratio of 38.24, and a Price to Book Value of 1.96. Compared to its peers, Deccan Cements' valuation stands out; for instance, UltraTech Cement is considered very expensive with a PE of 53.79, while Grasim Industries is rated attractive with a PE of 44.4.
Despite its fair valuation, Deccan Cements shows notable outliers in its ratios, particularly a PEG ratio of 0.00 and a relatively low ROE of 2.78%. The company's stock has performed significantly better than the Sensex, with a year-to-date return of 60.35% compared to the Sensex's 2.14%. Overall, while the valuation is fair, the high PE and EV ratios suggest caution for potential investors.