Is CSB Bank overvalued or undervalued?

As of 28 July 2025, the valuation grade for CSB Bank has moved from fair to expensive, indicating a shift in its perceived value. The company is currently considered overvalued. Key ratios include a PE ratio of 12.38, a price-to-book value of 1.63, and a PEG ratio of 2.60, which suggest that the stock may not offer sufficient growth potential relative to its price.
When compared to peers, CSB Bank's valuation appears less attractive; for instance, HDFC Bank has a PE ratio of 22.22 and ICICI Bank has a PE ratio of 21.71, both indicating higher valuations in the sector. Additionally, CSB Bank's net NPA to book value stands at 3.64%, which could raise concerns about asset quality compared to its peers. Despite its recent stock performance, which has outpaced the Sensex with a year-to-date return of 35.07% versus the Sensex's 3.52%, the overall valuation suggests caution for potential investors.