Is RHI Magnesita overvalued or undervalued?

Nov 13 2025 08:09 AM IST
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As of November 12, 2025, RHI Magnesita is considered overvalued with a PE ratio of 62.92 and lower return metrics, indicating a shift from an attractive to an expensive valuation compared to its peers and the market.
As of 12 November 2025, RHI Magnesita's valuation grade has moved from attractive to expensive, indicating a shift in perception regarding its market value. The company is currently overvalued, with a PE ratio of 62.92, an EV to EBITDA ratio of 23.82, and a Price to Book Value of 2.46. These figures suggest that the stock is trading at a premium compared to its earnings and book value.

In comparison to its peers, RHI Magnesita's valuation appears high; for instance, Vesuvius India has a PE ratio of 41.24, while IFGL Refractories stands at 57.42. Additionally, the company's return metrics are underwhelming, with a ROE of just 3.91% and a ROCE of 5.33%, further supporting the notion of overvaluation. Despite a strong historical performance over the past five years, recent returns have lagged behind the Sensex, with a year-to-date decline of 4.81% compared to the Sensex's gain of 8.10%.
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