Is NPR Finance overvalued or undervalued?

As of 25 June 2025, NPR Finance's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 16.17, an EV to EBIT of 10.45, and a Price to Book Value of 0.34, which suggest that while the company is not undervalued, it also does not appear to be overvalued at this time.
In comparison to its peers, NPR Finance's PE ratio is higher than Life Insurance's 12.45 but significantly lower than Bajaj Finance's 34.67, which is categorized as very expensive. Additionally, the company's EV to EBITDA ratio aligns with its peers at 10.45, further supporting its fair valuation. Notably, NPR Finance has outperformed the Sensex in the short term, with a 1-week return of 8.31% compared to the Sensex's 1.61%, although it has underperformed year-to-date.