Is NPR Finance overvalued or undervalued?

As of 16 June 2025, NPR Finance has moved from a fair to an attractive valuation grade, indicating a shift in perception regarding its market worth. The company is currently considered undervalued, particularly when compared to its peers. Key ratios include a PE ratio of 15.57, an EV to EBIT of 9.86, and a Price to Book Value of 0.33, which suggest that NPR Finance is trading at a discount relative to its earnings and asset value.
In comparison to its peers, NPR Finance's PE ratio of 15.57 is more favorable than Life Insurance's 12.42 and significantly lower than Bajaj Finance's 35.03, indicating a more attractive valuation. Additionally, while Bajaj Finserv is categorized as expensive with a PE of 36.52, NPR Finance's metrics suggest it has room for growth. Despite a recent decline in stock performance relative to the Sensex over the past week, the longer-term perspective shows that NPR Finance has outperformed the Sensex over three and five years, reinforcing its potential as an undervalued investment opportunity.