Is The Ramco Cement overvalued or undervalued?

As of 19 August 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 191.80, an EV to EBITDA of 23.01, and a Price to Book Value of 3.45. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, The Ramco Cement's valuation appears significantly higher, especially when contrasted with Grasim Industries, which has a PE ratio of 45.39 and an EV to EBITDA of 11.65, indicating a more attractive valuation. Additionally, Ambuja Cements, categorized as expensive, has a PE ratio of 34 and an EV to EBITDA of 20.86, further highlighting The Ramco Cement's relative overvaluation. Despite recent strong stock performance, including a 33.62% return over the past year compared to the Sensex's 1.52%, the valuation metrics suggest that the stock may not be a prudent investment at current levels.