Is Exxaro Tiles overvalued or undervalued?

As of 4 November 2025, Exxaro Tiles has seen its valuation grade change from very attractive to attractive, indicating a shift in market perception. The company is currently considered overvalued based on its high PE ratio of 67.65, which significantly exceeds peers like 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, suggesting that despite high earnings expectations, the current price may not justify the valuation.
In comparison to its peers, Exxaro Tiles' financial metrics indicate a premium valuation, particularly when looking at its ROCE of 3.62% and ROE of 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%. This performance, coupled with the high valuation ratios, reinforces the conclusion that Exxaro Tiles is overvalued in the current market environment.