Is Bank of Maha overvalued or undervalued?

As of 5 June 2025, the valuation grade for Bank of Maha has moved from attractive to very attractive, indicating a strong improvement in its perceived value. The company is currently undervalued, with a PE ratio of 7.67, a price to book value of 1.49, and an impressive PEG ratio of 0.30. These ratios suggest that the stock is trading at a significant discount compared to its earnings growth potential.
In comparison to its peers, Bank of Maha's valuation stands out favorably; for instance, State Bank of India is considered expensive with a PE ratio of 10.23, while Punjab National Bank and Bank of Baroda are both classified as very attractive with PE ratios of 7.61 and 6.50, respectively. Additionally, the company's recent performance shows a year-to-date return of 8.81%, outperforming the Sensex's 5.65% return, although it has underperformed over the past year with a decline of 14.78% compared to the Sensex's gain of 7.64%. Overall, Bank of Maha presents a compelling investment opportunity given its strong fundamentals and favorable peer comparison.