Is NLC India overvalued or undervalued?

As of 29 September 2025, the valuation grade for NLC India has moved from attractive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 13.82, an EV to EBITDA of 13.12, and a PEG ratio of 0.33, indicating a relatively low valuation compared to its growth rate.
In comparison to peers, NTPC is rated as attractive with a PE ratio of 13.82 and an EV to EBITDA of 10.81, while Torrent Power is also rated fair with an EV to EBITDA of 14.05. This suggests that while NLC India is fairly valued, it is not as attractive as some of its peers. Notably, NLC India has outperformed the Sensex in recent periods, with a year-to-date return of 13.28% compared to the Sensex's 2.85%, reinforcing its competitive position in the market.