Is NPR Finance overvalued or undervalued?

As of 26 June 2025, NPR Finance's valuation grade has moved from fair to attractive, indicating a shift in its perceived value. The company is currently considered undervalued based on its financial metrics, with a PE ratio of 14.75, an EV to EBIT of 9.04, and a Price to Book Value of 0.31. These ratios suggest that NPR Finance is trading at a discount compared to its peers, particularly when compared to Life Insurance, which has a PE ratio of 12.52 and an EV to EBITDA of 9.87, and Bajaj Finance, which is categorized as very expensive with a PE ratio of 35.54.
Despite recent stock performance showing a decline of 17.38% year-to-date compared to a 7.19% increase in the Sensex, the attractive valuation suggests that NPR Finance may present a buying opportunity. The company's low EV to Capital Employed of 0.22 further supports the notion that it is undervalued relative to its assets. Overall, NPR Finance appears to be a compelling investment option within the Non Banking Financial Company sector.