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 considered undervalued, especially when compared to its peers. 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, all of which suggest that the stock is trading at a discount relative to its earnings and book value.
In comparison with its peers, Naga Dhunseri's PE ratio is notably lower than Bajaj Finance, which stands at 35.27, and Life Insurance, which is at 11.74. This disparity highlights the potential for upside in Naga Dhunseri's valuation. Additionally, while the stock has underperformed the Sensex year-to-date with a return of -10.22% compared to the Sensex's 5.04%, its strong historical performance over the last five years, with a return of 545.81%, underscores its long-term value proposition.