Ujjivan Small Finance Bank Ltd. share price target

Ujjivan SFB has announced that Mr. Sanjeev Nautiyal has requested an early retirement due to health concerns. The board has accepted his resignation and appointed Ms. Carol Furtado, the current Executive Director (Whole-Time Director), as the interim MD & CEO, effective 1st Sep’26.

We maintain our BUY recommendation on the stock with an unchanged target price of Rs 86/share (valuing the stock at 1.8x FY28E ABV), implying an upside of 32% from the CMP. Currently, we keep our earnings estimates unchanged.

We maintain our BUY recommendation on the stock

Stable asset quality trends despite ongoing global market uncertainties, steady NIMs, and sustained momentum in disbursements have helped Ujjivan SFB (Ujjivan) deliver strong Q1FY27 earnings with 7bps QoQ RoA expansion to 2.2% with RoE settling at >18%.

We maintain our BUY recommendation on the stock

Ujjivan SFB continues to ride the MFI recovery story. AUM growth accelerated to 27% YoY, while margin jumped by 30bps QoQ to 8.5%, and credit cost moderated to 1.5%.

Operating profit in line with estimates; though PAT beat estimates on lower provisions; AQ performance remains better vs peers

We reiterate our BUY recommendation on the stock with an unchanged TP of Rs 74/share, implying an upside of 23% from the CMP.

By increasing the proportion of secured assets, such as affordable housing loans, MSME loans, vehicle loans, and gold loans, the bank aims to lower its overall risk profile. The secured loan portfolio now accounts for 48% of the total loan book. Net Interest Income grew 13% YoY in Q3FY26, supported by a declining cost of funds and strong growth in advances. NIM also expanded by 30 bps sequentially to 8.2%....

Ujjivan Small Finance Bank (USFB)’s Q3FY26 RoA improved to 1.5% (four straight quarters of RoA expansion), driven by a strong uptick in revenue, aided by NIM expansion and subsiding stress in MFI (gross slippages moderated to INR 2.2bn vs. INR 2.8bn QoQ).

We maintain our BUY recommendation on the stock

PAT marginally above our estimates; asset quality performance remains better vs peers

Earnings in line with estimates; asset quality performance remains better vs peers

Ujjivan Small Finance Bank (Ujjivan) is amongst the few SFBs which had been successful in scaling loan portfolio to INR 333bn by Q1FY26 from INR 75bn in FY18 with an average credit cost of ~150bps (ex-Covid).

We believe at 1.2x FY27E ABV, the risk-reward is favourable and impeccable execution of the strategy should drive stock performance. We recommend a BUY on the stock with a target price of Rs 53/share, implying an upside of 20% from the CMP.

Advances to grow 3x in FY25-FY30 with increased focus on secured segment; supported by branch expansion and a capital raise of Rs 20bn

With stress in the MFI segment receding and companies strategically shifting towards secured, high-yield assets such as affordable housing and vehicle loans, both advances and deposit growth are expected to get back on track by year-end, with advances projected to grow at 19% YoY. While credit costs are anticipated to decline, the shift in portfolio mix is likely to compress NIMs in the short term, leading to a temporary impact on return metrics. However, by the end of FY27, ROA is projected to improve to approximately ~2%. We upgrade our rating to Accumulate on the stock with a revised...

We maintain our BUY recommendation on the stock

Diversifying segments; rebalancing unsecured book to relatively high-yield IL from MGL

Diversifying to secured segments; rebalancing unsecured book to relatively high-yield IL from MGL