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 assessed as undervalued, with a PE ratio of 12.85, a price-to-book value of 1.56, and a dividend yield of 3.11%. Notably, its PEG ratio stands at 0.00, suggesting strong growth potential without the corresponding price increase.
In comparison to its peers, Ujjivan Small's valuation appears favorable. For instance, HDFC Bank and ICICI Bank are deemed expensive with PE ratios of 22.38 and 21.56, respectively, while IndusInd Bank is also attractive at a PE of 24.77. Ujjivan's net NPA to book value of 2.54% further supports its strong position within the sector. Despite a slight decline in the past week, the company's year-to-date return of 42.73% significantly outpaces the Sensex's 5.46%, reinforcing its undervalued status.