Is Dhanlaxmi Bank overvalued or undervalued?

Aug 01 2025 08:00 AM IST
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As of July 31, 2025, Dhanlaxmi Bank is fairly valued with a PE Ratio of 12.27 and a Price to Book Value of 0.76, lagging behind the Sensex with a year-to-date return of -13.72%, while its valuation is lower than peers like Axis Bank and Federal Bank but significantly below the more expensive HDFC Bank and ICICI Bank.
As of 31 July 2025, the valuation grade for Dhanlaxmi Bank has moved from very attractive to fair. The bank appears to be fairly valued at this time. Key ratios include a PE Ratio of 12.27, a Price to Book Value of 0.76, and a PEG Ratio of 0.08, indicating that the stock is trading at a low valuation relative to its earnings growth potential.

In comparison to its peers, Dhanlaxmi Bank's PE Ratio is lower than Axis Bank's 12.68 and Federal Bank's 12.32, both of which are also rated as fair. However, it is significantly below HDFC Bank and ICICI Bank, which are considered expensive with PE Ratios of 22.34 and 21.63, respectively. The recent stock performance has lagged behind the Sensex, with a year-to-date return of -13.72% compared to the Sensex's 3.90%, reinforcing the notion that Dhanlaxmi Bank is currently fairly valued within its competitive landscape.
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