Time period given by analyst is one year when Ujjivan Small Finance Bank Ltd. price can reach defined target. .
Ujjivan Small Finance Bank Ltd., incorporated in the year 2016, is a banking company (having a market cap of Rs 4484.98 Crore).
Financials
For the quarter ended 30-06-2021, the company reported a Standalone Total Income of Rs 716.29 Crore, down -2.56 % from last quarter Total Income of Rs 735.14 Crore and down -7.57 % from last year same quarter Total Income of Rs 774.98 Crore. The bank reported net profit after tax of Rs -233.47 Crore in latest quarter.
Investment Rationale
Provision spike could impact FY22 PAT by 76% while overall stress accretion would lower FY22/23 ABV by 20%/13%. MFI/MSE loan exposure at 80% is affecting Ujjivan, leading to rise in delinquencies and protracted recoveries. Lower multiple to 1.8x FY23ABV (earlier 2.1x), revise TP to Rs31 from Rs42. Change rating from BUY to ADD. Risks: higher provisions.
Promoter/FII Holdings
Promoters held 83.3 per cent stake in the company as of June 30, 2020, while FIIs held 5.1 per cent, DIIs 4.2 per cent and public and others 7.3 per cent.
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