Is Ujjivan Small overvalued or undervalued?

Oct 19 2025 08:08 AM IST
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As of October 17, 2025, Ujjivan Small is considered very expensive with a PE ratio of 22.65 and a lower Return on Equity of 6.96%, making it overvalued compared to peers like HDFC Bank and ICICI Bank, despite a strong year-to-date return of 44.36% that underperformed the Sensex's 7.44%.
As of 17 October 2025, the valuation grade for Ujjivan Small has moved from expensive to very expensive. This indicates a significant shift in perception regarding its valuation. The company is currently considered overvalued, with a PE ratio of 22.65, a Price to Book Value of 1.58, and a PEG ratio of 0.00. Notably, the Return on Equity (ROE) stands at 6.96%, while the Net NPA to Book Value is 3.75%.

In comparison to its peers, Ujjivan Small's valuation appears less favorable. For instance, HDFC Bank, which is rated expensive, has a PE ratio of 22.22, while ICICI Bank, rated fair, has a PE ratio of 20.98. This suggests that Ujjivan Small is trading at a premium compared to these more favorably rated banks. Additionally, while Ujjivan Small has shown a strong year-to-date return of 44.36%, it has underperformed the Sensex over the same period, which returned 7.44%.
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