Is Natl. Aluminium overvalued or undervalued?

As of 7 August 2025, the valuation grade for National Aluminium has moved from attractive to very attractive. The company is currently considered undervalued based on its strong financial ratios. The PE ratio stands at 6.61, significantly lower than the industry average, while the EV to EBITDA ratio is 4.08, indicating efficient earnings generation relative to enterprise value. Additionally, the PEG ratio is exceptionally low at 0.03, suggesting that the stock is priced attractively relative to its growth potential.
In comparison to peers, National Aluminium's valuation metrics are favorable; for instance, Hindalco Industries has a PE ratio of 9.34 and an EV to EBITDA of 6.21, while MMP Industries shows a PE of 16.6. These comparisons highlight National Aluminium's relative undervaluation in the non-ferrous metals sector. Furthermore, the company's recent stock performance has outpaced the Sensex, with a 3-year return of 144.24% compared to the Sensex's 38.08%, reinforcing the attractiveness of the current valuation.