scorecardresearchUjjivan Small Finance Bank surges 8% after posting highest-ever Q2 profit

Ujjivan Small Finance Bank surges 8% after posting highest-ever Q2 profit

Updated: 09 Nov 2022, 12:56 PM IST
TL;DR.
Ujjivan Small Finance Bank touched a 52-week-high of Rs. 30.50 on November 7, 2022 and a 52-week-low of 13.50 on June 23, 2022, indicating that at the current level, the stock is trading at 117 percent above its 52-week low and just 2.5 percent below its 52 week high.
The stock has been on a bull run and has returned over 73 percent to its shareholders in the past six months.

The stock has been on a bull run and has returned over 73 percent to its shareholders in the past six months.

Shares of Ujjivan Small Finance Bank rose nearly 8 percent in the early trading session on Wednesday, November 9 after the bank posted its highest-ever quarterly profit at 294 crore in the September quarter (Q2FY23).

During Wednesday’s trade, the stock opened at a price of Rs. 28.90 per share against the previous close of 28.10 and rallied further to touch an intraday high of 30.40. At 12:15 pm, it was trading at 29.80 on the NSE.

The stock touched a 52-week-high of Rs. 30.50 on November 7, 2022 and a 52-week-low of 13.50 on June 23, 2022, indicating that at the current level, the stock is trading at 117 percent above its 52-week low and just 2.5 percent below its 52 week high.

The stock has been on a bull run and has returned over 73 percent to its shareholders in the past six months. Moreover, the stock has shown a growth of 54 percent year-to-date. However, the stock has declined over 54 percent in the last five years.

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Shares of Ujjivan Small Finance Bank since past six months.

On Monday, Bengaluru-based Ujjivan Small Finance Bank (SFB) posted its highest-ever quarterly profit at 294 crore in the September quarter, led by a strong disbursal growth and fall in bad loans, reported PTI.

The bank had posted a net loss of 274 crore in the year-ago period. However, compared sequentially, the net profit was up by nearly 45 percent from 203 crore in the quarter that ended June 2022.

In the July-September period of 2022-23, total income jumped by 63 percent to 1,139.83 crore as against 699.74 crore last year, the official report stated.

The bank's gross advances at the end of the quarter under review grew by 44 percent to 20,938 crore as compared to the last year. In value terms, the gross NPA fell to 929 crore from 1,713 crore. Likewise, the net NPAs came down to 0.04 percent ( 7.32 crore) as compared to 3.29 percent ( 435.14 crore).

In the September quarter of FY23, the CASA ratio stood at 26.9 percent, up from 22.5 percent in the same quarter a year ago. Retail banking CASA increased by 79% year over year.

Domestic brokeage house HDFC Securities has an 'add' call on Ujjivan Small Finance Bank Ltd with a target price of 43.

Ujjivan Small Finance Bank Ltd., established in 2016, is a banking company with a market capitalization of 5,492.16 Crore. It is a mass market focused bank in India, catering to financially unserved and under-served segments and committed to building financial inclusion in the country. 

The bank has a Pan-India presence, with over 59.7 lakh customers, 575+ banking touchpoints across 248 districts, 24 states and union territories - as of September 30, 2021, its website shows.

According to a Mintgenie poll, an average of 13 analysts have a ‘Strong buy’ call on the stock.

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First Published: 09 Nov 2022, 12:56 PM IST