Ujjivan Small Finance Bank share Price(USFB) has emerged as a dynamic player in India’s financial landscape, captivating investors with its impressive growth trajectory. From humble beginnings as an NBFC in 2005, USFB ascended to a full-fledged bank in 2019, riding a wave of financial inclusion and catering to the underserved segments. Its focus on micro-banking, group loans, and rural credit has fueled a remarkable ascent, with its share price skyrocketing over 215% since May 2023.
- Investing in Ujjivan Small Finance Bank Share Price
- Ujjivan Small Finance Bank Share Price Price Analysis
- Market Trends for Ujjivan Small Finance Bank Share Price
- Ujjivan Small Finance Bank Stock Performance
- Dividends and Earnings for Ujjivan Small Finance Bank Share Price
- Ujjivan Small Finance Bank Shareholder Information
- Analyst Ratings for Ujjivan Small Finance Bank Share Price
- News and Updates on Ujjivan Small Finance Bank Share Price
- What is the future of Ujjivan Bank share?
- Is Ujjivan Bank Safe to Invest?
- What is the dividend of Ujjivan Bank?
- Frequently Asked Questions
Investing in Ujjivan Small Finance Bank Share Price
Cons:
- High NPAs: Ujjivan’s non-performing assets are relatively high, posing a potential risk.
- Limited analyst coverage: The bank’s recent surge has led to limited analyst coverage, making it difficult to gauge future performance.
- Volatility: USFB’s share price has experienced fluctuations, indicating potential future volatility.
- External factors: The Indian economy’s uncertain landscape could impact USFB’s performance.
Ujjivan Small Finance Bank Share Price Analysis
| Period | Change | Highest Price | Lowest Price | Closing Price |
|---|---|---|---|---|
| YTD (2024-01-04) | +90.13% | ₹76.90 | ₹40.00 | ₹75.50 |
| 1 Month | +3.02% | ₹76.90 | ₹73.00 | ₹75.50 |
| 1 Week | +0.77% | ₹75.30 | ₹73.00 | ₹75.50 |
| 1 Day | +0.20% | ₹75.50 | ₹75.20 | ₹75.50 |
| Previous Year (2023) | +215.70% | ₹76.90 | ₹24.10 | ₹75.50 |
Market Trends For Ujjivan Small Finance Bank Share Price
Market Trends for Ujjivan Small Finance Bank Shares:
Ujjivan Small Finance Bank (USFB) has captured investor attention with its rapid share price surge, but understanding the driving forces behind these trends is crucial for informed investment decisions. Here’s a breakdown of key market trends influencing USFB:
Positive Trends:
- Financial Inclusion: India’s strong focus on financial inclusion aligns with USFB’s core market of micro-entrepreneurs and rural areas, presenting significant growth potential.
- Digital Adoption: USFB’s embrace of technology and digital banking positions them well for future growth and cost optimization, attracting tech-savvy investors.
- Strong Financials: Despite concerns about NPAs, USFB’s healthy CASA ratio, profitability, and net profit margins paint a picture of financial stability, leading to optimism.
- Government Support: India’s government initiatives and supportive policies towards small businesses and rural development indirectly benefit USFB, boosting investor confidence.
Challenging Trends:
- High NPAs: USFB’s relatively high non-performing assets pose a potential risk to future earnings and growth, causing some investor apprehension.
- Limited Analyst Coverage: The bank’s recent surge has led to limited analyst coverage, making it difficult to accurately predict future performance and raising concerns for some investors.
- Market Volatility: USFB’s share price has experienced fluctuations along with the overall market, potentially discouraging risk-averse investors.
- External Factors: The Indian economy’s uncertainties, including inflation and potential interest rate hikes, could negatively impact USFB’s performance.
Ujjivan Small Finance Bank Stock Performance
Key Metrics
|
PE Ratio
(x) |
9.58 |
|
EPS – TTM
(₹) |
16.34 |
|
MCap
(₹ Cr.) |
4,803.57 |
|
Sectoral MCap Rank |
38 |
|
PB Ratio
(x) |
0.91 |
|
Div Yield
(%) |
0.80 |
|
Face Value
(₹) |
10.00 |
|
Beta |
1.34 |
|
VWAP
(₹) |
156.44 |
|
52W H/L
(₹) |
Potential Risk Factors:
- High Non-Performing Assets (NPAs): USFB’s relatively high NPA levels pose a significant risk to future earnings and growth, causing investor concern.
- Limited Analyst Coverage: Due to its recent surge, USFB has limited analyst coverage, making accurate future predictions challenging and increasing uncertainty.
- Market Volatility: USFB’s share price fluctuates along with the overall market, potentially discouraging risk-averse investors.
- External Factors: Indian economic uncertainties like inflation and potential interest rate hikes could negatively impact USFB’s performance.
Dividends and Earnings For Ujjivan Small Finance Bank Share Price
Dividends:
- Recent Dividend: USFB declared an interim dividend of ₹0.75 per share in November 2023. This translates to a dividend yield of around 2.24% based on the current share price.
- Dividend History: USFB has a limited dividend history. They started paying dividends in 2022 and have only declared one interim dividend so far. This makes predicting future dividend payments difficult.
- Payout Ratio: The bank’s payout ratio for the interim dividend was approximately 20%. This suggests they might prioritize reinvesting profits for future growth, potentially limiting future dividend payouts.
Earnings:
- Recent Performance: USFB’s earnings per share (EPS) for the quarter ended September 30, 2023, stood at ₹6.30. This represents a significant increase compared to previous quarters.
- Growth Potential: USFB’s focus on underserved segments, financial inclusion, and digital adoption holds potential for strong future earnings growth. However, managing NPAs effectively will be crucial for achieving this potential.
- Market Expectations: Analyst estimates for future earnings vary, with some predicting continued growth while others remain cautious due to potential economic headwinds.
Ujjivan Small Finance Bank Shareholder Information
Ownership Breakdown:
- Promoters: As of September 30, 2023, promoters held approximately 41.64% of the total paid-up share capital. The largest among them is Ujjivan Financial Services Private Limited with a 35.81% stake.
- Institutional Investors: Mutual funds, insurance companies, and other institutional investors held around 34.01% of the shares. Some prominent names include HDFC MF, SBI MF, and LIC.
- Individual Investors: Retail investors, both domestic and foreign, held around 24.35% of the shares.
Shareholding Pattern:
USFB follows the SEBI guidelines for shareholding disclosures. You can access detailed information about the shareholding pattern, including top shareholders and their shareholdings, on the website of the National Stock Exchange of India (NSE): https://www.nseindia.com/get-quotes/equity?symbol=UJJIVANSFB
Analyst Rating Of Ujjivan Small Finance Bank Share Price
Positive Views:
- Strong growth potential: Analysts recognize USFB’s focus on underserved segments and digital adoption as strong drivers for future growth.
- Financial stability: Despite concerns about NPAs, USFB’s healthy CASA ratio, profitability, and net profit margins provide some assurance of financial stability.
- Alignment with government initiatives: USFB’s focus on financial inclusion aligns with India’s government policies, fostering potential support and growth opportunities.
Neutral/Cautious Views:
- High NPAs: Analysts remain cautious about USFB’s relatively high non-performing assets, as they pose a risk to future earnings and growth.
- Limited analyst coverage: Due to its recent surge, USFB has limited analyst coverage, making it difficult to accurately predict future performance and increasing uncertainty.
- Market volatility: USFB’s share price has experienced fluctuations, potentially discouraging risk-averse investors.
News And Updates on Ujjivan Small Finance Bank Share Price
Positive News:
- Strong Q2FY24 results: USFB reported a net profit of Rs 327.74 crore for Q2FY24, up 24% year-on-year. Net Interest Income (NII) also grew 24% to Rs 823 crore.
- Increased FII holding: Foreign Institutional Investors (FIIs) have increased their stake in USFB by 8.91% in the past year, indicating growing investor confidence.
- Branch expansion: USFB continues to expand its branch network, opening a new branch in Vijayawada recently.
- Bancassurance tie-up: USFB has entered into a bancassurance partnership with ICICI Pru Life, further diversifying its offerings.
Neutral/Mixed News:
- High NPAs: USFB’s NPA ratio remains high at 4.54% as of September 30, 2023, posing a potential risk to future earnings.
- Limited analyst coverage: Despite the recent surge, analyst coverage for USFB remains limited, making it difficult to accurately predict future performance.
- Market volatility: The Indian stock market has experienced recent fluctuations, impacting USFB’s share price as well.
Negative News:
- ESOP allotment: Recent allotment of ESOPs has increased the bank’s paid-up capital, potentially diluting existing shareholders’ ownership.
What is the Future of Ujjivan Bank Share?
With the ever-growing large network of banks, Ujjivan Small Finance Bank Share Price Target 2024 may generate decent returns and meet the initial target of Rs. 72. Following that; you can expect the next target as a profit of Rs. 89.25 Nov 2023
Current Position (January 29, 2024):
- As of today, Ujjivan Bank shares are priced around ₹60.
- The bank has shown positive signs like consistent profit growth, robust deposit and loan disbursements, and expansion plans.
- However, concerns remain regarding asset quality (NPA levels), potential economic headwinds, and competition.
Analyst Predictions:
- Analyst predictions for Ujjivan Bank share price in 2024 vary, with some offering a target price as high as ₹89 and others remaining cautious.
- These predictions are based on factors like:
- Improvement in asset quality.
- Continued loan growth.
- Broader economic outlook.
Important Factors to Consider:
- Internal factors: Ujjivan Bank’s ability to manage NPAs, improve operational efficiency, and adopt new technologies will significantly impact its future performance.
- External factors: The overall economic climate, government policies, and industry trends will also play a crucial role.
Is Ujjivan Bank is safe to Invest?
Is it safe to invest in Ujjivan Bank fixed deposits? Ujjivan Small Finance Bank is listed in the Scheduled Banks by RBI and has a stable credit rating by various credit rating agencies. Also, the deposits made with the bank are covered with Rs. 5 lakh insurance by Deposit Insurance Credit Guarantee Corporation.
- Financial Health: Assess Ujjivan Bank’s financial statements, including profitability, asset quality, liquidity, and capital adequacy ratios. A strong financial position can indicate stability and resilience.
- Regulatory Environment: Understand the regulatory framework governing Ujjivan Bank’s operations. Compliance with regulations ensures stability and minimizes regulatory risks.
- Industry Outlook: Evaluate the broader outlook for the banking and financial services industry, including factors such as economic conditions, interest rates, competition, and technological advancements.
- Company Strategy: Review Ujjivan Bank’s business strategy, growth prospects, market positioning, and management team. A clear and well-executed strategy can drive long-term value creation.
- Risk Factors: Consider potential risks associated with investing in Ujjivan Bank, such as credit risk, market risk, regulatory risk, and operational risk. Diversification and risk management strategies can help mitigate these risks.
- Investment Objectives: Align your investment in Ujjivan Bank with your financial goals, risk tolerance, and investment horizon. Determine whether the investment fits within your overall investment strategy.
- Due Diligence: Conduct thorough research, including reading financial reports, analyst reports, and news articles about Ujjivan Bank. Seek advice from financial professionals or consult reputable sources for additional insights.
- Investment Allocation: Consider diversifying your investment portfolio across different asset classes, sectors, and geographies to manage risk effectively.
- Long-Term Perspective: Investing in Ujjivan Bank or any other stock requires a long-term perspective. Focus on the company’s fundamentals and long-term growth potential rather than short-term market fluctuations.
- Professional Advice: Consider consulting with a financial advisor or investment professional who can provide personalized advice based on your individual circumstances, financial goals, and risk tolerance.
What is the Dividend of Ujjivan Bank?
For the year ending March 2023 Ujjivan Small Finance Bank has declared an equity dividend of 12.50% amounting to Rs 1.25 per share. At the current share price of Rs 58.65 this results in a dividend yield of 2.13%. The company has a good dividend track report and has consistently declared dividends for the last 5 years.
Important to Note:
- This information pertains to the interim dividend declared for the current financial year.
- Ujjivan Bank typically declares both interim and final dividends each year.
- The final dividend for the financial year 2023-24 has not yet been declared. You can typically find information about dividend announcements on the company’s website, regulatory filings, and financial news websites.
Frequently Asked Questions
Promoters hold the majority (41.64%), followed by institutional investors (34.01%) and individual investors (24.35%).
Ratings range from “Buy” to “Neutral,” with most leaning towards “Buy” or “Hold,” indicating cautious optimism with uncertainties.
You can access information on their website, investor relations page, annual reports, stock exchanges like NSE and BSE, and financial news websites.
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