We do see a tactical upside in Ujjivan SFB should recovery continue, but it is yet to morph itself into an all-weather business
Ujjivan Small Finance Bank
PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
Ujjivan Small Finance Bank (Ujjivan SFB, CMP: Rs 18.85, Market Cap: Rs 3,257 crore), embroiled in multiple challenges — ranging from a surge in its bad assets to exodus of talent and anaemic growth — is now trying to regain lost ground with the new management in place. Undoubtedly, Q3 FY22 was sequentially a better quarter with lower bad asset formation, improved collection efficiency, and strong business growth. But does it signal all is well? The short answer is…
