Is South Ind.Bank overvalued or undervalued?

As of 20 October 2025, South Ind.Bank's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 7.29, a Price to Book Value of 0.93, and a PEG ratio of 0.61. In comparison to its peers, HDFC Bank is considered expensive with a PE of 21.67, while ICICI Bank is fairly valued with a PE of 20.06, highlighting South Ind.Bank's relative valuation position within the industry.
Despite its fair valuation, South Ind.Bank has shown strong performance with a 1-year return of 51.08%, significantly outpacing the Sensex's return of 3.86% during the same period. The bank's ROE stands at 12.76%, and its Net NPA to Book Value ratio is 4.76, suggesting a stable operational performance. Overall, while the bank is fairly valued, its recent stock performance indicates positive investor sentiment.