Is NBI Indl. Fin. overvalued or undervalued?

As of 2 July 2025, the valuation grade for NBI Industrial Finance has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 69.44, an EV to EBITDA of 53.38, and a Price to Book Value of 0.27. These ratios suggest that while the company has a high earnings multiple, its book value remains low, which may indicate potential undervaluation relative to its assets.
In comparison with peers, NBI Industrial Finance's PE ratio is significantly higher than that of Life Insurance at 12.54 and I R F C at 28.19, both of which are also rated fair. However, it is worth noting that Bajaj Finance is categorized as very expensive with a PE of 34.46, suggesting that NBI may still have room for growth relative to certain competitors. Despite a recent decline in stock performance compared to the Sensex, where NBI has a year-to-date return of -25.58% against the Sensex's 7.65%, the overall valuation suggests that the stock may be positioned for recovery in the long term.