Is Jana Small Finan overvalued or undervalued?

Aug 01 2025 08:00 AM IST
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As of July 31, 2025, Jana Small Finance is fairly valued with a PE ratio of 11.56, lower than its peers like HDFC Bank and ICICI Bank, and despite a recent underperformance, it has shown a positive year-to-date return of 20.43%.
As of 31 July 2025, the valuation grade for Jana Small Finance has moved from attractive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 11.56, a price to book value of 1.22, and a return on equity (ROE) of 10.58%.

In comparison to its peers, Jana Small Finance's PE ratio is lower than that of HDFC Bank at 22.34 and ICICI Bank at 21.63, both of which are considered expensive. Additionally, Axis Bank, which is also rated fair, has a PE ratio of 12.68, indicating that Jana Small Finance remains competitively priced within its sector. Notably, while the stock has underperformed over the past year with a return of -27.21% compared to the Sensex's -0.68%, it has shown a positive year-to-date return of 20.43%, suggesting some recovery potential.
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