Is NLC India overvalued or undervalued?

As of 8 October 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. Key ratios supporting this assessment include a PE ratio of 13.08, an EV to EBITDA of 12.67, and a PEG ratio of 0.31, which suggests strong growth potential relative to its price.
In comparison to its peers, NLC India has a PE ratio that is competitive with NTPC at 13.5, while significantly lower than Adani Power, which is very expensive at 23.12. Additionally, NLC's EV to EBITDA ratio of 12.67 is more favorable than that of Adani Power, reinforcing its attractive valuation. Notably, despite a recent decline in stock price, NLC India has outperformed the Sensex over the longer term, with a remarkable 3-year return of 291.72% compared to the Sensex's 40.53%.