Is Sagar Cements overvalued or undervalued?

As of 24 October 2025, Sagar Cements has moved from a valuation grade of risky to expensive, indicating a shift in perception regarding its financial health. The company is currently overvalued, with a price-to-earnings (PE) ratio of -21.29, an EV to EBITDA ratio of 17.22, and a price to book value of 1.73. Notably, the return on equity (ROE) stands at -10.60%, which raises concerns about profitability.
In comparison to its peers, Sagar Cements is positioned unfavorably against companies like Grasim Industries, which has a PE ratio of 45.4 and an EV to EBITDA of 11.65, and ACC, which boasts a PE of 14.92 and an EV to EBITDA of 10.14. The stark contrast in these ratios highlights Sagar Cements' expensive valuation relative to its more profitable competitors. Furthermore, the company's stock has underperformed against the Sensex in recent periods, particularly over the past month, where it declined by 15.02% compared to a 3.05% increase in the Sensex, reinforcing the notion of overvaluation.