Given the strong earnings trajectory and undervaluation, we see a decent upside in the stock of Ujjivan SFB for long-term investors.
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
Highlights Q4FY22 near-normal quarter with improvement across business parameters Worst of asset quality pain behind, collection efficiency improves High provision cover, incremental provision to go down Very high level of disbursement, driven by micro finance Deposit profile building up well; should support interest margin Stable margin and reduction in cost-to-income ratio to further support earnings Strong earnings trajectory and undervaluation make it a long-term bet Last year, whatever had to go wrong had gone wrong for Ujjivan Small Finance Bank (Ujjivan SFB; CMP: Rs 15.35; Market Cap:…
