Is ITD Cem overvalued or undervalued?

As of 18 July 2025, the valuation grade for ITD Cem has moved from very expensive to expensive. The company is currently considered overvalued based on its financial ratios. The PE ratio stands at 37.21, while the Price to Book Value is 7.57, and the EV to EBITDA is 16.26, indicating a premium valuation compared to its peers.
In comparison, Larsen & Toubro, which is rated attractive, has a PE ratio of 32.52 and an EV to EBITDA of 16.60, suggesting that ITD Cem is trading at a higher valuation despite similar operational metrics. Additionally, IRB Infrastructure Development, also categorized as expensive, has a PE ratio of 37.57, further supporting the notion that ITD Cem is on the higher end of the valuation spectrum. Notably, ITD Cem has outperformed the Sensex significantly over the past year with a return of 56.29% compared to the Sensex's 0.51%, but this strong performance does not negate its current overvaluation status.