Is South Ind.Bank overvalued or undervalued?

As of 14 August 2025, the valuation grade for South Ind.Bank has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, with a PE ratio of 5.75, a Price to Book Value of 0.74, and a PEG ratio of 0.40, all of which suggest strong fundamentals relative to its market price.
In comparison to its peers, South Ind.Bank's valuation stands out, especially 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. Additionally, South Ind.Bank's return on equity (ROE) is 12.79%, which is competitive within the sector. The recent stock performance shows that South Ind.Bank has outperformed the Sensex significantly over the past three years, with a return of 306.76% compared to the Sensex's 35.54%, reinforcing the undervaluation narrative.