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 perceived value. The company is currently considered overvalued. Key ratios include a PE ratio of 37.21, an EV to EBITDA of 16.26, and a Price to Book Value of 7.57, which are all significantly higher than those of its peers. For instance, Larsen & Toubro, a comparable company, has a PE ratio of 32.52 and an EV to EBITDA of 16.6, suggesting that ITD Cem is trading at a premium.
In comparison to its peers, ITD Cem's PEG ratio of 1.03 is lower than Larsen & Toubro's 2.51, yet the overall valuation metrics suggest that ITD Cem is not justified at its current price of 807.55, especially considering its recent stock performance against the Sensex, where it has outperformed with a YTD return of 49.80% compared to the Sensex's 4.63%. This strong performance may not be sustainable given the high valuation ratios.