Is South Ind.Bank overvalued or undervalued?

Aug 15 2025 08:06 AM IST
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As of August 14, 2025, South Ind.Bank's valuation has improved to very attractive, with a PE ratio of 5.75 and a PEG ratio of 0.40, indicating it is significantly undervalued compared to peers like HDFC Bank and ICICI Bank, while also outperforming the Sensex with a year-to-date return of 16.95%.
As of 14 August 2025, the valuation grade for South Ind.Bank has moved from attractive to very attractive, indicating a stronger outlook for the company. The stock is currently undervalued, with a PE ratio of 5.75, a price to book value of 0.74, and a PEG ratio of 0.40, all suggesting that the stock is trading at a significant discount compared to its earnings growth potential.

In comparison to its peers, South Ind.Bank's valuation metrics stand out, particularly against HDFC Bank, which has a PE ratio of 22.05, and ICICI Bank, with a PE ratio of 20.82, both categorized as expensive. Furthermore, the company's return on equity (ROE) is 12.79%, which is competitive within the sector. Notably, South Ind.Bank has outperformed the Sensex with a year-to-date return of 16.95% compared to the Sensex's 3.15%, reinforcing the attractiveness of its current valuation.
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