Is ITD Cem overvalued or undervalued?

As of 18 July 2025, the valuation grade for ITD Cem has moved from very expensive to expensive, indicating a slight improvement in its valuation outlook. The company is currently considered overvalued based on its high PE ratio of 37.21, a Price to Book Value of 7.57, and an EV to EBITDA ratio of 16.26. In comparison to peers, Larsen & Toubro has a more attractive PE ratio of 32.52, while IRB Infrastructure Development, also categorized as expensive, has a PE ratio of 37.57.
Despite the recent stock performance showing a 49.80% year-to-date return compared to the Sensex's 4.63%, the elevated valuation ratios suggest that ITD Cem is trading at a premium relative to its peers. This overvaluation is further supported by a PEG ratio of 1.03, which, while not excessively high, indicates that the stock price may not be justified by its growth prospects. Overall, ITD Cem appears to be overvalued in the current market context.