Is Ujjivan Small overvalued or undervalued?

As of 10 July 2025, the valuation grade for Ujjivan Small has moved from very attractive to attractive. Based on the analysis, the company appears to be undervalued. The key ratios include a PE ratio of 12.69, a price to book value of 1.54, and a dividend yield of 3.15%.
In comparison to its peers, Ujjivan Small's PE ratio is significantly lower than that of HDFC Bank at 22.79 and ICICI Bank at 21.52, both of which are considered expensive. Additionally, Ujjivan's ROE stands at 12.11%, which is competitive within the industry. Notably, while Ujjivan Small has underperformed the Sensex in the short term, it has delivered a strong year-to-date return of 40.98%, suggesting a robust growth trajectory that may not yet be fully reflected in its current valuation.