Is Ujjivan Small overvalued or undervalued?

As of 7 July 2025, the valuation grade for Ujjivan Small has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, with a PE ratio of 12.53, a Price to Book Value of 1.52, and a PEG ratio of 0.00, which suggests strong growth potential relative to its price. Additionally, the Dividend Yield stands at 3.19%, and the Return on Equity (ROE) is at 12.11%, reflecting solid profitability metrics.
When compared to peers, Ujjivan Small's valuation appears favorable; for instance, HDFC Bank and ICICI Bank are categorized as expensive with PE ratios of 22.63 and 21.68, respectively. Notably, Bandhan Bank, which is also rated very attractive, has a lower PE ratio of 10.42, further highlighting Ujjivan's relative value. Despite a recent dip in stock price compared to the Sensex, Ujjivan Small has shown impressive year-to-date returns of 39.24%, significantly outperforming the Sensex's 6.79% during the same period, reinforcing its undervalued status.