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 in its market perception. The company is currently considered overvalued, with a PE ratio of 299.93, an EV to EBITDA of 24.55, and a Price to Book Value of 3.47. These ratios suggest that the stock is trading at a significant premium compared to its earnings and book value.
In comparison to its peers, The Ramco Cement's valuation stands out as particularly high; for instance, Grasim Industries has a PE ratio of 47.92 and an EV to EBITDA of 12.46, while ACC, considered very attractive, has a PE of 15.95 and an EV to EBITDA of 11.17. Despite its recent stock performance, which has outpaced the Sensex with a 1-year return of 33.30% compared to the Sensex's 4.23%, the underlying valuation metrics indicate that The Ramco Cement is overvalued in the current market environment.