Is Exxaro Tiles overvalued or undervalued?

As of 4 November 2025, Exxaro Tiles has moved from a very attractive to an attractive valuation grade. The company appears to be overvalued based on its current metrics, particularly with a PE ratio of 67.65, which is significantly higher than peers such as Kajaria Ceramics at 47.64 and L T Foods at 22.18. Additionally, Exxaro's EV to EBITDA stands at 15.87, while its PEG ratio is notably low at 0.19, indicating potential overvaluation relative to its growth prospects.
In comparison to its peers, Exxaro Tiles' valuation metrics suggest it is less favorable, especially when considering the ROCE of just 3.62% and ROE of 0.14%. The stock has underperformed against the Sensex over the past year with a return of -9.02% compared to the Sensex's 5.94%, reinforcing the notion that the stock may be overvalued in the current market context.