Ujjivan Small Finance Bank Adjusts Valuation Grade Amid Competitive Banking Landscape

Ujjivan Small Finance Bank has recently undergone a valuation adjustment, reflecting its current financial standing within the banking sector. The bank's price-to-earnings ratio stands at 12.85, while its price-to-book value is recorded at 1.56. Additionally, Ujjivan boasts a dividend yield of 3.11%, with a return on equity (ROE) of 12.11% and a return on assets (ROA) of 1.52%. The net non-performing assets (NPA) to book value ratio is noted at 2.54, indicating a manageable level of asset quality.
In comparison to its peers, Ujjivan Small Finance Bank's valuation metrics present a competitive edge. For instance, Karur Vysya Bank and City Union Bank have lower price-to-earnings ratios, while South Indian Bank and T N Mercantile Bank show more attractive valuations overall. Ujjivan's performance over various time frames also highlights its resilience, with a year-to-date return of 42.73%, significantly outpacing the Sensex's 5.46% during the same period. This performance, alongside its valuation metrics, positions Ujjivan favorably within the midcap banking sector.