Is South Ind.Bank overvalued or undervalued?

As of 1 July 2025, the valuation grade for South Ind.Bank has moved from very attractive to attractive. The company is currently considered undervalued, with a PE ratio of 6.34, a Price to Book Value of 0.82, and a PEG ratio of 0.29. These ratios indicate that South Ind.Bank is trading at a significant discount compared to its peers, such as HDFC Bank with a PE of 22.91 and ICICI Bank with a PE of 21.64, both of which are categorized as expensive.
In addition to its favorable valuation metrics, South Ind.Bank has demonstrated strong performance with a return on equity (ROE) of 12.90% and a return on assets (ROA) of 1.05%. The company's net NPA to book value stands at 7.83%, which is manageable within the context of the industry. Notably, South Ind.Bank has outperformed the Sensex with a year-to-date return of 26.18% compared to the Sensex's 7.11%, reinforcing its undervalued status in the current market.