Is NCC overvalued or undervalued?

As of 7 November 2025, the valuation grade for NCC has moved from attractive to fair, indicating a shift in market perception. 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. Compared to its peers, NCC's valuation stands out; for instance, Larsen & Toubro is rated attractive with a PE of 33.3, while CG Power & Ind is considered very expensive with a PE of 108.41.
Despite its fair valuation, NCC has faced significant challenges, reflected in its recent stock performance, which has underperformed the Sensex over the past year, with a decline of 38.45% compared to the Sensex's gain of 4.62%. This suggests that while NCC may be fairly valued based on its current ratios, the market sentiment and performance indicate potential headwinds that could affect its future valuation.