Is Heidelberg Cem. overvalued or undervalued?

As of 7 November 2025, the valuation grade for Heidelberg Cement has moved from expensive to very expensive. The company is currently overvalued based on its financial metrics, with a PE ratio of 33.24, an EV to EBITDA of 4.05, and a Price to Book Value of 0.33. Compared to its peers, Heidelberg Cement's valuation appears less attractive; for instance, UltraTech Cement has a significantly higher PE ratio of 47.58, while Grasim Industries, which is rated very attractive, has a PE of 42.45.
In terms of performance, Heidelberg Cement has underperformed against the Sensex, with a year-to-date return of -9.18% compared to the Sensex's gain of 6.50%. This trend reinforces the notion that the stock is overvalued, especially given its current high valuation metrics relative to its peers in the cement industry.