Is Heidelberg Cem. overvalued or undervalued?

As of 14 August 2025, Heidelberg Cement's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued. Key ratios include a PE ratio of 42.07, an EV to EBITDA of 17.76, and a dividend yield of 3.74%.
In comparison with peers, UltraTech Cement is classified as very expensive with a PE ratio of 52.35, while Grasim Industries is attractive with a PE of 44.26. This positions Heidelberg Cement competitively within the industry, especially considering its ROCE of 13.06% and ROE of 8.25%. Notably, while Heidelberg's stock has underperformed the Sensex over the past year, it has shown resilience with a 3-year return of 9.56%, suggesting potential for future growth.