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 that the company is currently overvalued. The key ratios reflect this assessment: the PE ratio stands at an exceptionally high 299.93, the EV to EBIT ratio is 56.30, and the EV to EBITDA ratio is 24.55. These figures suggest that the company's stock price is not justified by its earnings or cash flow metrics.
In comparison to its peers, The Ramco Cement's valuation appears particularly steep. For instance, Grasim Industries, which is rated as attractive, has a PE ratio of 47.92 and an EV to EBITDA of 12.46, while ACC, rated as very attractive, shows a PE of 15.95 and an EV to EBITDA of 11.17. These comparisons further underscore that The Ramco Cement is overvalued relative to its industry peers. Notably, the company's recent stock performance has outpaced the Sensex, with a year-to-date return of 13.18% compared to the Sensex's 6.77%, but this does not mitigate the valuation concerns.