Is JK Lakshmi Cem. overvalued or undervalued?

As of 1 July 2025, the valuation grade for JK Lakshmi Cement has moved from attractive to fair. The company is currently fairly valued, with a PE ratio of 37.47, a Price to Book Value of 3.23, and an EV to EBITDA ratio of 15.07. In comparison to its peers, UltraTech Cement is considered very expensive with a PE ratio of 56.73, while Grasim Industries is rated attractive with a PE of 48.82.
Despite the fair valuation, JK Lakshmi Cement has shown strong stock performance, outperforming the Sensex with a year-to-date return of 14.45% compared to the Sensex's 7.11%. This performance, along with its competitive ratios, suggests that while the stock is fairly valued, it may still offer potential for growth relative to its peers in the cement industry.