Is The Ramco Cement overvalued or undervalued?

As of 7 October 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 177.48, an EV to EBITDA ratio of 21.55, and a Price to Book Value of 3.19. These figures suggest that the stock is trading at a significant premium compared to its earnings and book value.
In comparison with its peers, The Ramco Cement's valuation appears less favorable. For instance, Grasim Industries, which is rated as attractive, has a PE ratio of 45.11 and an EV to EBITDA of 11.61. Ambuja Cements, categorized as expensive, has a PE of 32.82 and an EV to EBITDA of 20.10. The Ramco Cement's high valuation ratios, particularly its PE ratio, highlight its overvaluation relative to these peers. Despite a recent positive stock return of 17.20% over the past year, which outperformed the Sensex's 1.08% return, the overall valuation metrics suggest that investors should exercise caution.