Ujjivan Financial Services Ltd. share price target

Ujjivan Financial Services Ltd. (UFS) has beaten our estimates on all counts by reporting a strong set of numbers for Q2FY20

Ujjivan Small Finance Bank, the wholly owned subsidiary of Ujjivan Financial Services Ltd. (USFL) serves over 47 lakh customers through 524 branches and 15,626 employees spread across 221 districts of 24 states in India with gross loan book size of Rs11,783cr. Also, it has about 474 full-service banking outlets with a deposit base of Rs7,956cr. The gross loan book has grown at 51% on a YoY basis to reach Rs11,783cr, with micro banking segment mix at 82% . The deposit base grew by 109% YoY, thus effectively covering 68%...

Ujjivan Small Finance Bank serves over 46 lakh asset customers through 524 branches and 14,752 employees spread across 221 districts of 24 states in India with gross loan book of Rs11,049cr. Also,...

Ujjivan Financial Services Ltd. (UFS) reported stellar Q4FY19 results with beat on all counts led by strong growth in AUM and disbursements.

Ujjivan Small Finance Bank serves over 41 lakh asset customers through 522 branches and 14,305 employees spread across 223 districts and 24 states in India with Gross Loan Book stands at Rs9,350cr. It has over 464 full-service...

Ujjivan Financial Services Ltd. (UFS) reported Q3FY19 consolidated results broadly in line with our estimates.

Ujjivan Financial Services Ltd. (UFS) reported Q2FY19 consolidated results broadly in line with our estimates.

Ujjivan Small Finance Bank serves over 40 lakh active customers through 462 branches and 13,169 employees spread across 223 districts and 24 states in India with Gross Loan Book stands at Rs8,300cr . It has over 367 full-service...

Ujjivan Small Finance Bank serves over 37 lakh active customers through 462 branches and 12,300 employees spread across 214 districts and 24 states in India with Gross Loan Book stands at Rs7,800cr . It has over 275 full-service banking...

Ujjivan Small Finance Bank serves over 37.1 lakh active customers through 464 branches and 11,242 employees spread across 209 districts and 24 states in India with Gross Loan Book stands at Rs.7,560cr and it has over 187 full-service...

Focus shifts at scaling retail liability franchise We lower our rating on Ujjivan to HOLD with TP at Rs430. Since our last note (Q3'18) the stock is up 34% on expectations of improved loan growth, receding asset quality and slow yet steady progression towards the SFB transition. Q4'18 results saw each of these aspects play out well. Growth guidance has been revised upwards; asset quality improving and we have factored the same into our estimates. Traction on retail liability franchise and higher growth in non-MFI portfolio remain key focus area . While we continue to like Ujjivan model, valuations...

Ujjivan Financial Services Ltd. (UFS) reported significant jump in net profit on back of healthy growth in loan & advances and significant surge in net interest margin in its Q4FY18 financial results.

After two consecutive quarters in red, Ujjivan reported PAT of Rs 293 mn (down 33% YoY) in Q3FY18, which was in line with our estimate. Operating metrics turned around strongly with disbursements up 28% YoY and NIM up 124 bps QoQ.

Ujjivan Financial Services Ltd. (UFS) reported a mixed set of numbers in its Q3FY18 financial results. Net revenue and loan & advances growth were in-line with estimates; however operating...

Maintain BUY with a TP of Rs 440 (2.5x Dec-19E ABV). Ujjivans 3QFY18 performance was in line of expectation. AUM grew by 6.4% QoQ to Rs 70.9bn. Provisions stood at Rs 287 mn as the company had largely provided for the delinquent book in 1HFY18. Disbursement grew 9.2/28.4% QoQ/YoY to Rs 21.3bn. PAT stood at Rs 293mn.

Ujjivan reported a loss of Rs 120 mn (est. Rs 118 mn PAT) due to higher provisions (11x YoY but down 45% QoQ at Rs 882 mn) related to bad assets generated during demonetization.

Last quarter of pain, Re-rating starts now

We retain Hold on Ujjivan with TP revised upwards to Rs370 (earlier Rs350). Q2FY18 earnings saw an improvement over the last quarter on the business front (disbursements up 14.8% QoQ) and asset quality side (GNPA at 4.99%, down 110bps QoQ also aided by w/offs). Transition to Small Finance Bank (SFB) model has gathered further momentum with reach now extended to 92 branches (vs. 15 in Q4'17). H2FY18 promises to be better over H1'18 on back of improved business environment and better controls. The near term earnings, however are expected to remain volatile as Ujjivan provides for portfolios overdue. We have tweaked our estimates for FY18-19E....

Maintain BUY with a TP of Rs 435 (2.5x Sept-19E ABV). Ujjivans 2QFY18 performance was largely in line with expectations. It made provisions of Rs 882mn, leading to negative PAT of Rs 120mn. Loan book growth was 3.3% QoQ at Rs.66.7bn, as disbursements improved 14.8%.

Ujjivan Financial Services (UFS) is an NBFC-MFI turned SFB with Gross Loans of INR 6459 cr and 457 asset branches.