Is New India Assura overvalued or undervalued?

As of 8 October 2025, the valuation grade for New India Assura has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued, with a PE ratio of 26.12, an EV to EBITDA of 15.90, and a PEG ratio of 2.80. In comparison, peers such as Bajaj Finance and Bajaj Finserv have higher PE ratios of 36.53 and 33.68, respectively, while Life Insurance, which is rated very attractive, has a much lower PE ratio of 11.6.
Despite the company's recent stock performance lagging behind the Sensex, particularly with a year-to-date return of -5.57% compared to the Sensex's 4.65%, the valuation metrics suggest that New India Assura is not a compelling investment at its current price of 189.80. The low ROE of 3.58% and ROCE of 8.27% further reinforce the notion that the stock is trading at a premium relative to its financial performance.