Is New India Assura overvalued or undervalued?

As of 10 October 2025, the valuation grade for New India Assura has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios include a PE ratio of 26.54, an EV to EBIT of 16.50, and a PEG ratio of 2.85, all of which suggest that the stock is priced at a premium compared to its earnings growth potential.
In comparison to its peers, New India Assura's valuation appears high; for instance, Bajaj Finance has a PE ratio of 36.56, while Life Insurance, which is rated very attractive, has a PE of just 11.65. This stark contrast highlights the overvaluation of New India Assura relative to its industry. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -4.03% compared to the Sensex's 5.58%, further reinforcing the notion that the stock may not justify its current price.