Ujjivan Financial Services Ltd. share price target

UJJIVAN reported strong operating performance led by robust AUM growth (66.5% YoY) amidst fairly stable asset quality and margins (adjusted for capital raise). The strong growth rubbed off positively on productivity ratios as well.

Ujjivan Financial Services Limited- UJJIVAN, incorporated in 2004, is India's third-largest microfinance institution (MFI) in disbursements (source MFIN, Sep-15). It has 11.2% market share and is one of the 10 applicants to receive a licence from the RBI to convert into a small finance bank (SFB). The conversion is expected in Jan-17.Ujjivan should be quality retail banks/NBFCs (3.0x FY18E P/ABV) and listed microfinance players (SKS, not under our coverage trades at 6.4x FY16 P/B). HDFC Securities value Ujjivan at 3.0x FY18E P/ABV yielding a target price of Rs 510.

Trendlyne has 4 reports on UJJIVAN updated in the last year from 4 brokers with an average target of Rs 510.

Ujjivan is the third largest micro finance company based on AUM and the largest in terms of geographical reach in India with 470 branches across 24 states. It is one of the 10 NBFC which were granted the in principle approval for setting up Small Finance Bank. Transition to Small Finance Bank to be smooth and offer scalability: The propos..

Ujjivan Finanical Services Ltd, (Ujjivan) started operations as an NBFC in 2005 with a mission to provide full range of financial services to the economically active poor who are not adequately served by financial institutions. Ujjivan has its headquarters in Bangalore with regional offices in New Delhi, Kolkata and Pune. It has 470 branches in 24 states and Union Territories across India as on December 31, 2015. Its business is primarily based on the joint liability group lending model for providing collateral free, small ticket-size loans to economically active poor women. It also offers individual loans to Micro & Small...

The offer for sale is essentially to enhance company's brand name and reduce its foreign shareholding in accordance with the requirements of the SFB In-principle approval to set up an SFB. Net proceeds of the...

Incorporated on December 28, 2004, Ujjivan Financial Services Private Limited is the third largest NBFC-MFI in India in terms of loans disbursed as of September 30, 2015, with Gross AUM aggregating over Rs 40.88 billion (Source: MFIN Micrometer Report, September 2015). Company's business primarily based on the joint liability group-lending model for providing collateral free, small ticket size loans to economically active women. The company also offers individual loans to Micro & Small Enterprises (MSEs). The issue consists of fresh issue (of Rs 358.16 crore) and an offer for sale of ~Rs 524.33 crore (at the higher price band) thus totaling Rs 882.5 crore. The objects of the issue comprises of taking advantage of being listed at the stock exchanges as well as to utilize the net proceeds from the Fresh Issue towards augmenting its capital base to meet future capital requirements. Ujjivan is one of the prospective...