Stock Of The Day: Ujjivan SFB Shares See No Respite After 2024 Rout

Shares of Ujjivan Small Finance Bank Ltd. extended their losses this year after tumbling nearly 45% in 2024. The lender's plan to apply for a universal banking license failed to cheer investors.

The stock of Ujjivan has fallen by 3% in 2025. It tumbled on Friday after the company's third-quarter profit fell 64%. The stock has been falling since hitting a life-high of Rs 63 per share in December 2023.

Ujjivan's stock trades below the long-term trend gauge — 200-daily moving average. The scrip currently is also below the 14-day simple moving average and the 21-day exponential moving average.

The counter currently faces support at Rs 32.6, which is also 2 standard deviations below the 14-day moving average. A breakout of that could send the stock towards Rs 32 level. On the upside, the stock faces resistance at Rs 35.5 and a breakout could send the stock to further upsides.

The stock fell as much as 6.9% to Rs 32.1 per share, compared to the 0.4% decline in the NSE Nifty 50. The relative strength index was at 38, trading near the oversold zone.

Thirteen of the 16 analysts tracking the company have a 'buy' rating on the stock, two suggest a 'hold' and one has a 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 35%.

Ujjivan Small Finance Bank reported a 64% fall in its profit on a yearly basis to Rs 109 crore during the three months ended December due to the rise in provisions. Sequentially, the bottomline of the bank declined 53%.

Provisions and contingencies of the bank rose to Rs 223 crore, sharply higher than Rs 63 crore a year ago.

The small finance bank's asset quality was mixed during the quarter, with the gross non-performing assets ratio marginally rising to 2.68% as of Dec. 31, compared to 2.52% in the previous quarter. The net NPA ratio was unchanged from a quarter ago at 0.56%.

The board of directors of the lender approved a proposal on Thursday to make an application to the Reserve Bank of India for a universal bank license. Earlier, AU Small Finance Bank and Fino Payments Bank applied for universal bank licenses with the central bank.