Is Bandhan Bank overvalued or undervalued?

As of 18 July 2025, the valuation grade for Bandhan Bank has moved from very attractive to attractive. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 10.99, a Price to Book Value of 1.24, and a PEG ratio of 0.47, indicating that the stock may be trading at a discount relative to its earnings growth potential.
In comparison to its peers, Bandhan Bank's PE ratio of 10.99 is significantly lower than that of HDFC Bank at 22.29 and ICICI Bank at 21.56, both of which are categorized as expensive. Additionally, while IndusInd Bank is also rated attractive, it has a much higher PE ratio of 25.67. Despite Bandhan Bank's recent stock performance showing a 17.74% return year-to-date compared to the Sensex's 4.63%, the long-term outlook remains cautious, with a 1-year return of -4.47%. Overall, the current valuation suggests that Bandhan Bank is undervalued relative to its peers.