Is Ujjivan Small overvalued or undervalued?

As of 9 June 2025, the valuation grade for Ujjivan Small has moved from very attractive to attractive. The company is currently assessed as undervalued. Key ratios include a PE ratio of 12.95, a Price to Book Value of 1.57, and a Dividend Yield of 3.09%.
In comparison to its peers, Ujjivan Small's PE ratio is significantly lower than HDFC Bank at 22.51 and ICICI Bank at 21.67, which are both considered expensive. Additionally, Ujjivan's ROE stands at 12.11%, indicating solid profitability relative to its equity base. The stock has outperformed the Sensex in the short term, with a year-to-date return of 43.86% compared to the Sensex's 5.51%, reinforcing the notion that it remains an attractive investment opportunity.