Is Bandhan Bank overvalued or undervalued?

As of 1 July 2025, the valuation grade for Bandhan Bank has moved from attractive to very attractive, indicating a significant positive shift in its perceived value. The bank is currently considered undervalued, supported by a PE ratio of 10.98, a price to book value of 1.24, and a PEG ratio of 0.47, which are all favorable compared to its peers.
In comparison, HDFC Bank and ICICI Bank, which are considered expensive, have PE ratios of 22.91 and 21.64, respectively, highlighting Bandhan Bank's relative value. Additionally, while Bandhan Bank has a return on equity (ROE) of 11.27% and a return on assets (ROA) of 1.43%, these metrics further reinforce its attractiveness in the current market. Despite a recent decline in stock price over the past year, Bandhan Bank has outperformed the Sensex in the short term, with a year-to-date return of 17.7% compared to the Sensex's 7.11%.