Is Exxaro Tiles overvalued or undervalued?

As of 4 June 2025, Exxaro Tiles' valuation grade has moved from very attractive to attractive, indicating a shift in market perception. The company appears to be overvalued at present, with a PE ratio of 400.43, significantly higher than its peers. For comparison, LT Foods Ltd. has a PE ratio of 27.31, while Cera Sanitaryware Ltd. stands at 34.68, both suggesting a more favorable valuation relative to earnings.
Key ratios for Exxaro Tiles include an EV to EBITDA of 21.47 and a ROCE of 3.62%, which further emphasize its high valuation compared to industry standards. The company's recent stock performance has outpaced the Sensex over the past week and month, with returns of 12.2% and 56.13%, respectively, but the long-term outlook remains concerning given its negative returns over the past year and three years. Overall, the elevated valuation metrics suggest that Exxaro Tiles is currently overvalued in the market.