Is Bank of Maha overvalued or undervalued?

As of 11 July 2025, the valuation grade for Bank of Maha has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued. Key ratios include a PE ratio of 7.80, a Price to Book Value of 1.51, and a PEG ratio of 0.31, all of which suggest strong fundamentals relative to its market price.
In comparison to its peers, Bank of Maha's PE ratio is lower than that of State Bank of India at 10.18, which is classified as expensive, and it is also more favorable than Punjab National Bank's PE of 7.61, which is rated very attractive. The company's strong return on equity (ROE) of 19.38% further supports its undervaluation narrative. Despite a recent decline in stock performance compared to the Sensex over the past year, Bank of Maha has outperformed the index significantly over a three-year period, reflecting its potential for growth.