Is The Ramco Cement overvalued or undervalued?

Nov 18 2025 08:20 AM IST
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As of November 17, 2025, The Ramco Cement is considered overvalued with a PE ratio of 127.21, significantly higher than its peers, and a low ROE of 2.45%, indicating that investors may be paying too much for the stock despite a positive one-year return.
As of 17 November 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 127.21, a Price to Book Value of 3.12, and an EV to EBITDA ratio of 20.36. These figures suggest that the stock is trading at a significant premium compared to its earnings and book value.

In comparison to its peers, The Ramco Cement's PE ratio is notably higher than UltraTech Cement's 47.33 and Grasim Industries' 43.64, both of which are considered very expensive but still significantly lower than Ramco's valuation. Additionally, the company's ROE stands at a mere 2.45%, which is considerably lower than the industry average, further supporting the notion of overvaluation. Despite a positive 1-year return of 10.36% compared to the Sensex's 9.50%, the overall valuation metrics suggest that investors may be paying too much for The Ramco Cement's stock at this time.
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