Is Ujjivan Small overvalued or undervalued?

As of 20 June 2025, the valuation grade for Ujjivan Small has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, with a PE ratio of 12.85, a Price to Book Value of 1.56, and a PEG ratio of 0.00, suggesting strong growth potential relative to its price. Additionally, the Dividend Yield stands at 3.11%, which is appealing for income-focused investors.
In comparison to its peers, Ujjivan Small's valuation appears favorable. For instance, HDFC Bank and ICICI Bank are both categorized as expensive, with PE ratios of 22.38 and 21.56, respectively, while Ujjivan Small's lower PE ratio highlights its relative attractiveness. Furthermore, the company's Return on Equity (ROE) of 12.11% and Return on Assets (ROA) of 1.52% reflect solid operational performance. Despite a recent dip in stock performance compared to the Sensex over the past week, Ujjivan Small has shown significant growth year-to-date, outperforming the index with a return of 42.73%.