Is Bank of Maha overvalued or undervalued?

As of 16 July 2025, the valuation grade for Bank of Maha has moved from attractive to very attractive, indicating a strong improvement in its valuation outlook. The company is currently considered undervalued. Key ratios supporting this assessment include a PE ratio of 7.58, a Price to Book Value of 1.46, and a PEG ratio of 0.38, all of which suggest that the stock is trading at a discount compared to its earnings growth potential.
In comparison to its peers, Bank of Maha's PE ratio is notably lower than that of State Bank of India, which is at 10.47, indicating that Bank of Maha offers better value relative to its earnings. Additionally, Punjab National Bank, another peer, has a PE ratio of 7.95, further reinforcing the attractiveness of Bank of Maha's valuation. The company's recent stock performance has outpaced the Sensex, with a year-to-date return of 9.85% compared to the Sensex's 5.75%, highlighting its strong market position.