Is South Ind.Bank overvalued or undervalued?

As of 25 August 2025, the valuation grade for South Ind.Bank has moved from attractive to very attractive. This indicates a strong improvement in its valuation outlook, suggesting that the company is currently undervalued. The key ratios supporting this assessment include a PE ratio of 5.85, a price to book value of 0.75, and a PEG ratio of 0.40, all of which are significantly lower than industry peers.
In comparison to its peers, South Ind.Bank stands out with its very attractive valuation against HDFC Bank's expensive PE ratio of 21.75 and ICICI Bank's PE ratio of 20.91. The bank's return on equity (ROE) is also noteworthy at 12.79%, further reinforcing its strong performance relative to competitors. Additionally, South Ind.Bank has outperformed the Sensex significantly over the past three years with a return of 292.52% compared to the Sensex's 38.90%, highlighting its strong market position and growth potential.