Is The Ramco Cement overvalued or undervalued?

As of 3 September 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. Key ratios include a PE ratio of 190.94, an EV to EBITDA of 22.92, and a Price to Book Value of 3.44, all of which are significantly higher than industry norms.
In comparison to its peers, The Ramco Cement's valuation stands out, with UltraTech Cement at a PE of 54.08 and Grasim Industries at 44.68, both of which are considerably lower. The high valuation ratios suggest that the market has priced in excessive growth expectations that may not materialize. Despite a strong recent performance, with a 1-year return of 30.56% compared to a -2.41% return for the Sensex, the current valuation does not align with the fundamentals, reinforcing the conclusion that The Ramco Cement is overvalued.