Is Ujjivan Small overvalued or undervalued?

Oct 20 2025 08:09 AM IST
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As of October 17, 2025, Ujjivan Small is considered very expensive and overvalued with a PE ratio of 22.65, higher than its peers HDFC Bank and ICICI Bank, despite strong year-to-date returns of 44.36%.
As of 17 October 2025, the valuation grade for Ujjivan Small has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently deemed overvalued based on its financial metrics. Key ratios include a PE ratio of 22.65, a price to book value of 1.58, and a return on equity (ROE) of 6.96%.

In comparison to its peers, HDFC Bank has a PE of 22.22 and ICICI Bank has a PE of 20.98, both suggesting that Ujjivan Small's valuation is higher than that of its competitors. Additionally, while Ujjivan Small has shown strong year-to-date returns of 44.36% compared to the Sensex's 7.44%, the overall valuation metrics indicate that the stock is not justified at its current price level.
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