Is Kajaria Ceramics overvalued or undervalued?

As of 17 October 2025, the valuation grade for Kajaria Ceramics has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 51.00, an EV to EBITDA of 28.27, and a ROCE of 21.49%.
In comparison to its peers, Kajaria Ceramics has a similar PE ratio to Cera Sanitary, which stands at 31.57, while L T Foods is significantly lower at 23.47. The PEG ratio for Kajaria is also high at 51.00, indicating that it may be overvalued relative to its growth prospects. Notably, the company's stock has underperformed the Sensex over the past year, with a return of -8.94% compared to the Sensex's 3.64%, suggesting that market sentiment may be cautious despite the fair valuation.