Ujjivan SFB: Why the recent underperformance calls for attention
Ujjivan SFB shows resilient growth, secures assets, stable NIM, but recent underperformance prompts attention. Confident guidance amid challenges.
Despite recent underperformance, Ujjivan Small Finance Bank (Ujjivan SFB) demonstrates resilient growth, with disbursements gaining traction. The strategic shift towards secured assets and improving deposit composition contribute to stability. While the net interest margin (NIM) remains constant, there is optimism for improvement. However, the asset quality witnessed deterioration in Q3, contrasting with the overall confident guidance.
The cost-to-income ratio faced a one-off impact, influencing the financial landscape. Noteworthy triggers on the horizon include a potential reverse merger and succession plans, promising short-term developments. Ujjivan SFB's current market valuation, with a CMP of Rs 51.85 and a market cap of Rs 10,151 crore, positions it attractively for a robust return ratio.
Despite a recent 9 per cent decline in stock performance over the last couple of months, the overall outlook suggests resilience and potential for positive momentum. Investors may find the current phase as an opportune time to consider Ujjivan SFB, leveraging its evolving dynamics and strategic initiatives for potential returns.
Follow the Hindeez on Google News
Follow the Hindeez channel on WhatsApp
We hate spam as much as you do
© Hindeez 2024, All Rights Reserved
