Is NCL Res. & Finl. overvalued or undervalued?

Oct 08 2025 08:02 AM IST
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As of October 7, 2025, NCL Res. & Finl. is considered an attractive investment due to its undervalued status, with a PE ratio of 25.59, a price-to-book value of 0.57, and a favorable PEG ratio of 0.08 compared to industry peers, despite a year-to-date return of -25% and a strong five-year performance increase of 1042.86%.
As of 7 October 2025, the valuation grade for NCL Res. & Finl. has moved from very attractive to attractive, indicating a shift in perceived value. The company is currently assessed as undervalued, with a price-to-earnings (PE) ratio of 25.59, a price-to-book value of 0.57, and an EV to EBITDA ratio of 18.76. These ratios suggest that while the company is not without its challenges, it remains an appealing investment relative to its peers.

In comparison to its industry, NCL Res. & Finl. shows a more favorable PEG ratio of 0.08 when contrasted with Bajaj Finance's PEG of 2.25 and Life Insurance's PEG of 0.72. Additionally, its EV to sales ratio of 7.13 is lower than that of Bajaj Finserv, which stands at 12.84, further supporting the notion that NCL Res. & Finl. is undervalued. Despite a year-to-date return of -25% compared to the Sensex's 4.85%, the long-term performance over five years shows a remarkable increase of 1042.86%, indicating potential for recovery and growth.
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