Is Indian Bank overvalued or undervalued?

As of 9 June 2025, the valuation grade for Indian Bank has moved from very attractive to attractive. The company is currently considered undervalued, with a PE ratio of 8.04, a Price to Book Value of 1.27, and a PEG ratio of 0.23. Notably, the Return on Equity (ROE) stands at 15.75%, indicating strong profitability relative to shareholder equity.
In comparison to its peers, Indian Bank's valuation appears favorable. For instance, State Bank of India is classified as expensive with a PE ratio of 10.32, while Punjab National Bank is also attractive with a PE of 7.75. Other peers like Bank of Baroda and Union Bank are rated very attractive with PE ratios of 6.55 and 6.59, respectively. Despite a recent stock return of 22.79% year-to-date compared to the Sensex's 5.51%, Indian Bank's valuation remains appealing in the current market landscape.