Is Exxaro Tiles overvalued or undervalued?

As of 16 September 2025, Exxaro Tiles has moved from a very attractive to an attractive valuation grade. The company is currently considered overvalued. Key ratios include a PE ratio of 75.23, an EV to EBITDA of 17.31, and a ROE of 14%. In comparison, peers such as Kajaria Ceramics, which is deemed expensive, has a PE of 57.74, while Cera Sanitary, also attractive, has a PE of 33.41.
Despite the recent stock performance showing a 13.22% return over the past week compared to a 1.58% return for the Sensex, the high valuation ratios suggest that Exxaro Tiles may not provide sufficient upside potential at its current price of 9.08. The elevated PE ratio, in particular, indicates that the stock may be priced for perfection, making it less appealing relative to its peers.