Utkarsh Small Finance Bank Limited Valuation
UTKARSHBNK · Financial Services · Current price ₹13.32
Is Utkarsh Small Finance Bank Limited undervalued?
We estimate the fair value of Utkarsh Small Finance Bank Limited at ₹58 per share, against a market price of ₹15. That puts the share price about +299.4% below our estimate, at medium confidence. This is our view of what the business is worth, not a target price or a forecast of where the share price will go.
How this fair value is calculated
This estimate comes from 1 method: Discounted cash flow (2-stage) (₹58). Each is weighted by how well its inputs held up for this company. The full working, including the assumptions and what data was missing, is set out below.
The range around this estimate
Our estimate for Utkarsh Small Finance Bank Limited spans ₹52 to ₹63. A margin of safety means buying meaningfully below the estimate: the wider the range, the more room the assumptions leave for error.
Valuation multiples
Utkarsh Small Finance Bank Limited trades at a P/E of 2.8x and a P/B of 0.9x, with a dividend yield of 3.4%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.
How we got this fair value
Every number below is part of the same estimate for Utkarsh Small Finance Bank Limited. Nothing here is a target price or a forecast of where the share price will go.
Workable, with real gaps. Weigh it alongside your own view rather than on its own.
Estimate range ₹52 – ₹63
Why this method for this business
DCF is the most appropriate model for valuing a bank, as it captures the intrinsic value of the business through discounted cash flows, which is critical for assessing the long-term viability of a financial institution.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
Intrinsic value from 2-stage discounted cash flows (primary for asset-light / normal businesses); FCFF path
- ev_sales: insufficient data to compute EV/Sales ratio
What was missing
- Lack of forward EBITDA estimates
- Limited data on capital allocation efficiency
What drives it
12 inputs, grouped by how strong each claim is
- FCF_0 (normalized)
- 921 ₹cr
- Net debt
- 2,829.4 ₹cr
fcf_norm (median ≤5y positive)
gross debt (cash n/a)
- Discount rate (r)
- 13.18%
- Beta
- 1.3
WACC (computed)
bottom-up industry
- Stage-1 start growth
- 8%
- Fade shape
- hard
- Terminal growth (g)
- 4.93%
- Stage-1 years
- 12 y
lifecycle-floor
lifecycle Startup
macro terminal × quality premium
lifecycle Startup horizon
- Lifecycle stage
- Startup
- Quality premium
- 0.985×
forecast engine (L20)
moat None + capital allocation
- Path
- FCFF
- Terminal-value fraction
- 0.413
computed (D/E vs 0.8)
PV_TV / (PV_1+PV_TV)
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for Utkarsh Small Finance Bank Limited: which models suit the business, the moat, the growth and margin assumptions. It does not produce the number. The fair value itself is computed in Python by a deterministic engine (version 2026.08.1) from those inputs, so the same inputs always give the same result and every figure above can be traced to a source.
Estimated 15 Sept 2026. Re-run as new financials and news arrive.
How we value stocks
We estimate what a business is worth from its own economics: cash flows, returns on capital, and a multiple justified by its quality, rather than from where the share price has been. A fair value estimate is a view, not a verdict, and it is only as good as the inputs listed above.
Read the full fair-value methodologyUnderstand the ratios
More on Utkarsh Small Finance Bank Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.