Is Naga Dhunseri overvalued or undervalued?

As of 1 October 2025, the valuation grade for Naga Dhunseri has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently assessed as undervalued, particularly when compared to its peers in the Non-Banking Financial Company (NBFC) sector. Key ratios include a PE Ratio of 8.81, a Price to Book Value of 0.30, and an EV to EBITDA of 16.76, which suggest that the company is trading at a discount relative to its earnings and book value.
In comparison to notable peers, Bajaj Finance has a much higher PE Ratio of 35.27 and an EV to EBITDA of 19.22, while Life Insurance shows a PE of 11.74 and an EV to EBITDA of 9.16, both indicating that Naga Dhunseri is more attractively priced. Additionally, despite recent underperformance in the year-to-date returns, where Naga Dhunseri is down 10.22% compared to a 5.04% gain in the Sensex, its long-term performance over three and five years shows substantial outperformance, with returns of 213.52% and 545.81%, respectively. This reinforces the view that Naga Dhunseri is currently undervalued.