Is Sagar Cements overvalued or undervalued?

Oct 26 2025 08:04 AM IST
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As of October 24, 2025, Sagar Cements is considered overvalued with a PE ratio of -21.29 and an EV to EBITDA of 17.22, underperforming against peers like UltraTech Cement and Grasim Industries, and has seen a stock return of -15.02% compared to the Sensex's 3.05%.
As of 24 October 2025, Sagar Cements' valuation grade has moved from risky to expensive, indicating a shift in perception regarding its financial health. The company is currently overvalued, with a PE ratio of -21.29, an EV to EBITDA ratio of 17.22, and a Price to Book Value of 1.73. These ratios suggest that the market is pricing the stock at a premium compared to its earnings and book value, which raises concerns about its sustainability.

In comparison to its peers, Sagar Cements stands out unfavorably; for instance, UltraTech Cement has a PE ratio of 47.85 and an EV to EBITDA of 28.40, while Grasim Industries shows a PE of 45.4 and an EV to EBITDA of 11.65, both indicating stronger market positions. Notably, Sagar Cements has underperformed against the Sensex, particularly in the last month with a stock return of -15.02% compared to the Sensex's 3.05%, reinforcing the notion that it is overvalued in the current market landscape.
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