Is Bandhan Bank overvalued or undervalued?

As of 18 July 2025, Bandhan Bank's valuation grade has moved from very attractive to attractive, indicating a shift in its perceived value. The bank is currently considered undervalued, with a PE ratio of 10.99, a price-to-book value of 1.24, and a PEG ratio of 0.47. In comparison to its peers, HDFC Bank and ICICI Bank are deemed expensive with PE ratios of 22.29 and 21.56, respectively, highlighting Bandhan Bank's relative affordability.
Despite a recent stock return of 6.58% over the past week compared to a -0.90% return for the Sensex, Bandhan Bank's longer-term performance has been less favorable, with a 1-year return of -4.47%. Nevertheless, its current financial metrics suggest that it remains a compelling investment opportunity within the private sector banking industry, particularly when contrasted with its higher-valued peers.