Utkarsh Small Finance Bank — Peer Comparison

How the peer fair value is calculated and which companies were used as benchmarks.

Peer selection

Peers are selected from the same Private sector bank industry. 8 companies were matched as valid comparables.

Same-industry peers share similar business models, cost structures, and growth prospects — making them the most appropriate benchmarks for valuation multiples.

Peer comparison table

Private sector bank · 8 peers · sector medians shown

Better than medianWorse than median

Company	Mkt Cap	P/E	P/B	EV/EBITDA	ROE	Net Margin	Rev CAGR 3y
Utkarsh Small Finance Bank UTKARSHBNK · you	₹2,435 Cr	-2.6×	0.8×	—	-30.3%	-0.0%	—
Sector median	—	12.4×	1.4×	—	13.4%	0.1%	—
RBL Bank RBLBANK	₹19,432 Cr	27.5×	1.4×	—	5.3%	—	—
City Union Bank CUB	₹16,386 Cr	15.7×	2.0×	—	12.6%	—	—
Ujjivan Small Finance Bank Limited UJJIVANSFB	₹14,113 Cr	15.5×	2.4×	—	15.4%	0.2%	—
Tamilnad Mercantile Bank Limited TMB	₹13,435 Cr	9.3×	1.6×	—	17.1%	0.2%	—
The South Indian Bank Limited SOUTHBANK	₹11,986 Cr	7.9×	1.3×	—	16.1%	0.1%	—
Jammu & Kashmir Bank J&KBANK	₹10,706 Cr	4.5×	0.7×	—	14.3%	—	—
The Karnataka Bank Limited KTKBANK	₹10,271 Cr	7.8×	0.8×	—	9.9%	—	—
Equitas Small Finance Bank Limited EQUITASBNK	₹8,520 Cr	16.7×	1.4×	—	8.6%	0.1%	—

Peer comparison verdict

Utkarsh trades at a discount to sector peers on P/E (-2.6× vs median 12.4×). This may signal undervaluation — or reflect lower expected growth or higher perceived risk versus the peer group.

Why median? Why these weights?

Median over mean: The sector median is used instead of the average because valuation multiples have extreme outliers — one high-growth company at 200× P/E would dramatically skew a mean. The median gives the middle value in the peer set, which better represents typical pricing.

Sector-specific weights: The weight given to each method reflects what matters most in this sector. For banks, P/B dominates because their value is tied to book assets. For IT companies, P/E carries the most weight because earnings quality matters more than asset base. For capital-intensive businesses, EV/EBITDA accounts for varying debt levels across peers and removes financing structure bias.

Limitations of peer comparison

Peer comparison assumes comparable companies are truly comparable — which is never perfectly true. Sector classifications can be imperfect: a conglomerate classified as "IT" may also have significant manufacturing revenue. Small peer counts (below 5) reduce confidence, as a single outlier can skew the sector median. When the entire sector is broadly expensive, peer comparison will show even an expensive stock as "fairly valued" relative to its peers.

The peer fair value shown is an algorithmic estimate based on publicly available financial data. It is not investment advice or a recommendation to buy, sell, or hold any security. Please consult a SEBI-registered investment adviser before making any investment decision.