Is NCC overvalued or undervalued?

As of 7 November 2025, the valuation grade for NCC has moved from attractive to fair. The company is currently fairly valued, with a PE ratio of 15.45, an EV to EBITDA ratio of 13.72, and a Price to Book Value of 0.16. In comparison to peers, Larsen & Toubro is rated attractive with a significantly higher PE ratio of 33.3, while IRB Infrastructure Development is considered expensive with a PE of 32.17.
Despite the fair valuation, NCC has shown underperformance relative to the Sensex, with a year-to-date return of -28.82% compared to the Sensex's 6.50%. This underperformance, coupled with a low ROCE of 1.84% and ROE of 1.05%, suggests that while the stock is fairly valued, it may face challenges in generating returns that meet investor expectations.