Is Heidelberg Cem. overvalued or undervalued?

As of 10 November 2025, the valuation grade for Heidelberg Cement has moved from very expensive to expensive. The company is currently considered overvalued based on its financial ratios and peer comparison. Key ratios include a PE ratio of 32.99, an EV to EBITDA of 3.93, and a dividend yield of 3.73%.
In comparison to its peers, Heidelberg Cement's PE ratio is significantly lower than UltraTech Cement's 47.21 and Grasim Industries' 43.08, both of which are categorized as very expensive. Additionally, while Ambuja Cements is also classified as expensive with a PE of 23.84, it indicates that Heidelberg Cement's valuation remains on the higher side relative to its industry. Over the past year, Heidelberg Cement has underperformed, with a stock return of -17.94% compared to a 5.09% return for the Sensex, further reinforcing the notion of its overvaluation.