Is The Ramco Cement overvalued or undervalued?

As of 5 September 2025, The Ramco Cement's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 188.87, an EV to EBITDA of 22.71, and a Price to Book Value of 3.40. In comparison to its peers, UltraTech Cement is classified as very expensive with a PE of 53.59, while Grasim Industries is considered attractive with a PE of 44.86.
Despite its high valuation ratios, The Ramco Cement's recent stock performance has outpaced the Sensex, with a 1-year return of 26.22% compared to the Sensex's decline of 1.81%. This suggests that while the stock may not be undervalued, its performance relative to the broader market reinforces its current fair valuation status.