Is Niraj Cement overvalued or undervalued?

As of 13 June 2025, Niraj Cement's valuation grade has moved from attractive to very attractive, indicating a positive shift in its market perception. The company is currently considered undervalued, supported by a PE ratio of 21.19, an EV to EBITDA ratio of 18.02, and a Price to Book Value of 1.37. These figures suggest that the stock is trading at a reasonable price relative to its earnings and assets.
In comparison to its peers, Niraj Cement's valuation metrics stand out, particularly against Larsen & Toubro, which has a significantly higher PE ratio of 33.63, and Siemens, which is deemed very expensive with a PE of 56.38. Despite recent underperformance relative to the Sensex, with a year-to-date return of -22.81% compared to the Sensex's 3.81%, the long-term outlook remains promising, as evidenced by a 1-year return of 20.72%. This combination of favorable ratios and peer comparisons reinforces the conclusion that Niraj Cement is undervalued in the current market.