Since its founding in 2017, Ujjivan Small Finance Bank has experienced one of India’s quickest growth rates among small finance institutions. The bank provides a variety of financial services, such as microfinance, retail loans, and savings, to the underserved and unbanked segments of society.
Ujjivan Small Finance Bank has experienced impressive growth in recent years in terms of its clientele, loan portfolio, and financial performance. The bank’s share price, which has experienced substantial ups and downs since its debut in 2019, reflects this expansion.
Several investors and analysts are keenly observing the bank’s share price trajectory and forecasting its target price for the years ahead due to its solid fundamentals and growth potential.
Ujjivan Small Finance Bank, headquartered in Bangalore, India, commenced its operations on February 1, 2017. It operates under the regulatory framework of Section 22(1) of the Banking Regulation Act, 1949, and in August 2017, it earned the coveted status of a Scheduled Bank from the Reserve Bank of India.
Originally established as a Non-Banking Financial Company (NBFC) in 2005 under Ujjivan Financial Services Limited (UFSL), the institution has consistently focused on serving the financial needs of underserved populations. Led by Ittira Davis as the Managing Director and CEO, the bank offers a comprehensive suite of financial services, coupled with a robust digital presence. With a workforce of over 16,000 employees, the bank is committed to promoting financial and digital inclusion as it aspires to evolve into a bank that caters to the broader mass market.
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Contents
HOW TO BUY UJJIVAN SMALL FINANCE BANK SHARES IN INDIA?
In India, if you wiFinance Gradeupsh to purchase shares of Ujjivan Small Finance Bank, you have the option to utilize the services of several reputable brokerage firms. Here is a list of well-known brokerage companies in India:
- Zerodha
- Upstox
- ICICI Direct
- HDFC Securities
- Kotak Securities
- Sharekhan
- Angel Broking
- 5Paisa
- Motilal Oswal
- Axis Direct
UJJIVAN SMALL FINANCE BANK IN RECENT NEWS
- Ujjivan Small Finance Bank’s Managing Director and CEO, Ittira Davis, disclosed during an exclusive interview with Moneycontrol on August 2, that the bank is targeting a 25% growth in the fiscal year 2023-24. In addition to this growth ambition, the bank plans to establish 20 housing finance asset centers across India and is actively pursuing a universal bank license in the upcoming financial year.
- Ujjivan Small Finance Bank plans to recruit 4,800 employees during the fiscal year 2024. A significant portion of these new hires, totaling 1,628 personnel, will be focused on the southern states.
- The upward momentum of Ujjivan Small Finance Bank’s stock remains strong, with a remarkable 22% gain observed over the course of six trading sessions.
- Emkay Global has revised its earnings projections for Ujjivan Small Finance Bank for FY24-26, increasing them by 5-17%. They anticipate the bank to deliver robust returns, with a return on assets (ROA) expected to range from 2.5% to 3.4%, and a return on equity (ROE) projected to fall between 22% and 28% during this period.
UJJIVAN BANK SHARE PRICE TARGET 2023
| UJJIVAN SFB SHARE PRICE TARGET 2023 | Maximum Price | Minimum Price |
| September 2023 | ₹49.15 | ₹44.68 |
| October 2023 | ₹47.72 | ₹43.38 |
| November 2023 | ₹48.67 | ₹44.25 |
| December 2023 | ₹50.13 | ₹41.78 |
According to the table above, Ujjivan Small Finance Bank’s share price is expected to witness a bullish uptrend in 2023, with a significant growth percentage predicted in the latter half of the year. In September 2023, the maximum share price is predicted to be ₹49.15 and the minimum ₹44.68, indicating a potential rise in price from the previous year.
From June onwards, the share price is predicted to experience steady growth, with the maximum price reaching ₹50.13 in December, representing a potential growth percentage of around 59% from the minimum price in May. The share price is predicted to be particularly bullish from September to November, with the maximum price predicted to be above ₹40, showcasing strong growth potential.
UJJIVAN BANK SHARE PRICE TARGET 2024
| UJJIVAN SFB SHARE PRICE TARGET 2024 | Maximum Price | Minimum Price |
| January 2024 | ₹38.48 | ₹34.03 |
| February 2024 | ₹43.24 | ₹36.03 |
| March 2024 | ₹45.52 | ₹37.01 |
| April 2024 | ₹41.38 | ₹31.83 |
| May 2024 | ₹34.48 | ₹26.52 |
| June 2024 | ₹41.38 | ₹31.83 |
| July 2024 | ₹35.17 | ₹27.26 |
| August 2024 | ₹38.69 | ₹30.71 |
| September 2024 | ₹40.62 | ₹31.25 |
| October 2024 | ₹47.79 | ₹36.76 |
| November 2024 | ₹50.18 | ₹38.60 |
| December 2024 | ₹51.19 | ₹39.37 |
Ujjivan Small Finance Bank’s share price is expected to continue its upward trajectory in 2024. The maximum and minimum share price targets for the year are ₹51.19 and ₹26.52, respectively, indicating a wide range of potential outcomes.
The share price is expected to start the year on a high note, with the maximum price reaching ₹38.48 in January, representing a significant growth percentage from the maximum price in December 2023. The share price is then predicted to experience a dip in February, but rebound in March and April, reaching a maximum of ₹45.52 in the latter month.
From May to July, the share price is expected to experience a slight dip, but then recover in August and September, reaching a maximum of ₹40.62 in the latter month. The share price is predicted to be particularly bullish from October to December, with the maximum price reaching ₹51.19 in the final month of the year, showcasing significant upside potential for investors.
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UJJIVAN BANK SHARE PRICE TARGET 2025
| UJJIVAN SFB SHARE PRICE TARGET 2025 | Maximum Price | Minimum Price |
| January 2025 | ₹52.21 | ₹40.16 |
| February 2025 | ₹54.96 | ₹42.27 |
| March 2025 | ₹57.70 | ₹44.39 |
| April 2025 | ₹51.52 | ₹39.63 |
| May 2025 | ₹46.84 | ₹36.03 |
| June 2025 | ₹51.52 | ₹39.63 |
| July 2025 | ₹49.07 | ₹37.75 |
| August 2025 | ₹51.11 | ₹39.32 |
| September 2025 | ₹53.67 | ₹41.28 |
| October 2025 | ₹56.89 | ₹43.76 |
| November 2025 | ₹60.87 | ₹46.82 |
| December 2025 | ₹62.09 | ₹47.76 |
Ujjivan Small Finance Bank’s share price is expected to continue its uptrend in 2025, with the maximum and minimum share price targets for the year being ₹62.09 and ₹36.03, respectively.
The year is expected to start on a positive note, with the maximum price reaching ₹52.21 in January, representing a promising start to the year. The share price is then predicted to experience a steady growth trajectory, reaching a maximum of ₹57.70 in March, and ₹62.09 in December, showcasing significant upside potential for investors.
Despite a slight dip in April and May, the share price is expected to recover and continue its upward trend from June to November, with the maximum price reaching ₹60.87 in November. The share price is expected to close the year on a high note, reaching its highest point in December.
UJJIVAN BANK SHARE PRICE TARGET 2026 TO 2030
| UJJIVAN SFB SHARE PRICE TARGET BY | Maximum Price | Minimum Price |
| 2026 | ₹43.46 | ₹30.42 |
| 2027 | ₹36.94 | ₹25.86 |
| 2028 | ₹66.50 | ₹46.55 |
| 2029 | ₹136.60 | ₹95.62 |
| 2030 | ₹152.12 | ₹106.48 |
Ujjivan Small Finance Bank share price target is expected to be in a bearish trend, with the minimum price projected to be around ₹30.42 and the maximum price predicted to be ₹43.46. However, the bank’s share price is forecasted to bounce back in the following years.
In 2027, the projected minimum and maximum prices are ₹25.86 and ₹36.94, respectively, indicating a bullish trend. By 2028, Ujjivan Small Finance Bank’s share price is expected to skyrocket, with the minimum and maximum prices forecasted to be ₹46.55 and ₹66.50, respectively. This bullish trend is predicted to continue into 2029, with the projected minimum and maximum prices being ₹95.62 and ₹136.60, respectively.
Finally, in 2030, the bank’s share price target is predicted to be in a bullish trend, with the minimum and maximum prices projected to be ₹106.48 and ₹152.12, respectively. The projected growth percentage over these years suggests that Ujjivan Small Finance Bank’s shares may prove to be a valuable long-term investment.
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FINANCIAL STRENGTH OF UJJIVAN BANK (2019 TO 2023)
| Metric | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 |
|---|---|---|---|---|---|
| Revenue | 1,832 | 2,704 | 2,806 | 2,813 | 4,165 |
| Interest | 725 | 1,070 | 1,078 | 1,039 | 1,467 |
| Expenses | 1,053 | 1,417 | 1,944 | 2,557 | 1,730 |
| Financing Profit | 54 | 217 | -215 | -783 | 968 |
| Financing Margin (%) | 3% | 8% | -8% | -28% | 23% |
| Other Income | 206 | 322 | 302 | 313 | 589 |
| Depreciation | 61 | 73 | 77 | 80 | 90 |
| Profit before tax | 199 | 466 | 10 | -550 | 1,467 |
| Tax Rate (%) | 22% | 25% | 19% | 25% | 25% |
| Net Profit | 199 | 350 | 8 | -415 | 1,100 |
| EPS, in Rs) | 1.38 | 2.02 | 0.05 | -2.40 | 5.63 |
| Dividend Payout (%) | 0% | 0% | 0% | 0% | 22% |
Over the past five years, this company has undergone significant shifts in its financial performance. Revenue has experienced substantial growth, increasing from Rs 1,832 million in March 2019 to Rs 4,165 million in March 2023, indicating robust top-line expansion. However, the journey was not without challenges, as reflected in the varying financing profit, which ranged from a high of Rs 968 million to a low of -Rs 783 million during this period, impacting the financing margin. It’s worth noting the company’s ability to generate other income, which climbed from Rs 206 million to Rs 589 million, showcasing diversification in revenue sources. While depreciation costs and tax rates remained relatively stable, the company achieved a noteworthy net profit of Rs 1,100 million in March 2023, and the earnings per share (EPS) surged to Rs 5.63. Moreover, the company initiated a dividend payout of 22%, signaling a commitment to shareholder returns. These fluctuations in financial metrics indicate a dynamic journey marked by challenges and successes, ultimately reflecting the company’s resilience and adaptability over the years.
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POINTS TO NOTE WHILE INVESTING IN UJJIVAN SMALL FINANCE BANK SHARES:
- Anticipations are positive for the upcoming quarter’s performance of the company.
- Over the past five years, the company has achieved remarkable profit growth at a Compound Annual Growth Rate (CAGR) of 176%.
- The company has maintained a median sales growth rate of 24.8% over the last decade.
- The company’s interest coverage ratio is on the lower side.
- Over the past three years, the company has recorded a relatively low return on equity, standing at 7.17%.
UJJIVAN SMALL FINANCE BANK SHARE PRICE TARGET BY EXPERTS:
- Geojit, in its research report dated August 24, 2023, has expressed a positive outlook on Ujjivan Small Finance Bank and issued a buy recommendation for the stock. They have set a target price of Rs 62.(August 24, 2023).
- YES Securities, as of June 12, 2023, suggests buying shares of Ujjivan Small Finance Bank with a target price of Rs 50.
- YES Securities, in its research report dated June 11, 2023, has expressed a positive sentiment towards Ujjivan Small Finance Bank and issued a buy rating for the stock. They have set a target price of Rs 50.
CONCLUSION: UJJIVAN SMALL FINANCE BANK
Ujjivan Small Finance Bank has seen a tremendous increase in its overall income, revenue, and profit based on the financial statements of the previous five years. The bank, however, has also incurred losses in some years and had to make provisions and prepare for eventualities, which led to a negative PAT in FY 2022. While the bank’s net profit margin has changed over time, its net interest margin has remained stable. Throughout time, the basic EPS has also grown significantly.
If you want to invest in a company with the potential for long-term success, consider Ujjivan Small Finance Bank. Investors, however, must be mindful of the potential risks connected to the banking sector, including changes in regulatory regulations and changes in the economyUjjivan Small Finance Bank has displayed a dynamic financial performance over the years, marked by significant fluctuations in key metrics. While revenue has shown substantial growth, the financing profit has been inconsistent, affecting the financing margin. However, the bank’s ability to generate other income signals diversification in revenue sources. Notably, the company achieved a noteworthy net profit and a substantial earnings per share (EPS) of Rs 5.63 in March 2023. In addition to its financial journey, experts’ views have been positive, with Geojit and YES Securities both issuing buy recommendations with target prices of Rs 62 and Rs 50, respectively, underlining the potential for growth and value in Ujjivan Small Finance Bank shares.
Suhani Bhat, a student of Hansraj college, is a finance writer who takes deep interest in stock market, mutual funds, and other financial news. She writes for multiple finance blogs, including Financegradeup.com. Other than English, she also speaks Hindi.