Is Naga Dhunseri overvalued or undervalued?

As of 1 July 2025, the valuation grade for Naga Dhunseri has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued based on its current metrics. Key ratios include a PE Ratio of 16.26, a Price to Book Value of 0.34, and an EV to EBITDA of 38.18, which suggest that the stock is trading at a discount compared to its earnings and book value.
In comparison to peers, Naga Dhunseri's PE Ratio is notably higher than Life Insurance's 12.71 but significantly lower than Bajaj Finance's 34.98, indicating a more favorable valuation relative to some competitors. The PEG Ratio of 0.00 further emphasizes the potential for growth at a low price, while the Dividend Yield of 0.06% suggests limited returns from dividends. Additionally, Naga Dhunseri's stock has outperformed the Sensex over the past year, with a return of 22.66% compared to the Sensex's 5.80%, reinforcing the attractiveness of the investment.