Is NPR Finance overvalued or undervalued?

As of 18 November 2025, NPR Finance's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 36.38, an EV to EBIT of 18.72, and a Price to Book Value of 0.37. These ratios suggest that while the PE ratio is relatively high, the low Price to Book Value indicates potential undervaluation in terms of asset backing.
When comparing NPR Finance to its peers, Bajaj Finance is classified as very expensive with a PE ratio of 34.46, while Life Insurance stands out as very attractive with a PE ratio of 11.34. This peer comparison further supports the conclusion that NPR Finance is fairly valued within its industry context. Notably, NPR Finance's stock has underperformed against the Sensex in the short term, with a 1-week return of -6.12% compared to the Sensex's 0.96%, but it has shown significant long-term growth with a 5-year return of 200.48%.