Is NLC India overvalued or undervalued?

As of 5 March 2025, the valuation grade for NLC India has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE Ratio of 12.47, an EV to EBITDA of 11.32, and a PEG Ratio of 0.30, all of which suggest that the stock is trading at a discount compared to its earnings growth potential.
In comparison with peers, NLC India stands out favorably; for instance, its PE Ratio is lower than the industry average, while its EV to EBITDA is also competitive. Notably, the company's recent stock performance has outpaced the Sensex over the past year, with a return of 9.55% compared to the Sensex's 7.60%, reinforcing the attractiveness of its current valuation.