Is NLC India overvalued or undervalued?

As of 7 October 2025, NLC India has moved from an attractive to a fair valuation grade. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 13.85, an EV to EBITDA of 13.14, and a PEG ratio of 0.33, which suggests that the stock is reasonably priced relative to its growth prospects.
When compared to peers, NLC India's PE ratio is slightly higher than NTPC's at 13.67, which is rated as attractive, while significantly lower than Adani Power's PE of 23.53, which is considered very expensive. Notably, the company's return on equity (ROE) stands at 14%, indicating a solid performance relative to its equity base. Additionally, NLC India has outperformed the Sensex over the past year with a return of 8.18% compared to the Sensex's 1.08%, reinforcing its position in the market.