Is Exxaro Tiles overvalued or undervalued?

As of 23 October 2025, Exxaro Tiles' valuation grade has moved from very attractive to attractive, indicating a shift in market perception. The company is currently assessed as overvalued, primarily due to its high PE ratio of 63.61 and an EV to EBITDA ratio of 15.11, which are significantly higher than its peers. For instance, Kajaria Ceramics, also rated attractive, has a PE ratio of 49.97, while L T Foods, rated very attractive, stands at 23.81.
In comparison to its peers, Exxaro Tiles shows a PEG ratio of 0.18, which suggests some growth potential, but the current valuation metrics indicate that it is not justified given its low ROCE of 3.62% and ROE of 0.14%. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -12.27% compared to the Sensex's 8.21%, further supporting the view that Exxaro Tiles is overvalued in the current market context.