Is Jana Small Finan overvalued or undervalued?

As of 24 September 2025, the valuation grade for Jana Small Finance has moved from attractive to fair, indicating a shift in perception regarding its market value. The company is currently fairly valued, with a PE ratio of 11.49, a price-to-book value of 1.22, and a PEG ratio of 0.00. Notably, its return on equity (ROE) stands at 10.58%, while the net NPA to book value is 6.42%, which is a critical metric for assessing asset quality.
In comparison to its peers, Jana Small Finance's valuation appears more favorable. For instance, HDFC Bank and ICICI Bank are considered expensive with PE ratios of 21.06 and 20.17, respectively. Additionally, while Jana Small Finance has shown a year-to-date return of 19.62%, outpacing the Sensex's 4.58%, its one-year performance has been less favorable, with a decline of 20.13% compared to the Sensex's drop of 3.77%. Overall, the current valuation suggests that Jana Small Finance is positioned reasonably within its competitive landscape.