Is The Ramco Cement overvalued or undervalued?

As of 4 July 2025, The Ramco Cement's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued, with a PE ratio of 299.93, an EV to EBIT of 56.30, and an EV to EBITDA of 24.55. These ratios significantly exceed those of its peers, such as Grasim Industries, which has a PE ratio of 47.92 and an EV to EBITDA of 12.46, and ACC, which shows a PE of 15.95 and an EV to EBITDA of 11.17.
In comparison to the broader market, The Ramco Cement has outperformed the Sensex over various periods, including a 33.30% return over the past year versus the Sensex's 4.23%. However, despite this strong performance, the high valuation ratios suggest that the stock may not be a prudent investment at current levels.