Is ITD Cem overvalued or undervalued?

As of 20 June 2025, the valuation grade for ITD Cem has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company is still considered overvalued. Key ratios include a PE ratio of 36.86, an EV to EBITDA of 16.11, and a ROE of 20.33%.
In comparison with peers, ITD Cem's PE ratio is higher than Larsen & Toubro, which stands at 34.31, and IRB Infra.Devl., which has a PE of 38.06. This suggests that ITD Cem is priced at a premium relative to its peers in the construction industry. Despite its strong recent performance, with a year-to-date return of 48.40% compared to the Sensex's 5.46%, the current valuation metrics indicate that ITD Cem remains overvalued in the market.