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Ujjivan Small Finance Bank Shares May Rally Up To 38%, Says ICICI Securities — Here's Why

Despite a leadership change of Mr. Sanjeev Nautiyal, incumbent MD, who has requested an early retirement due to health concerns, Ujjivan Small Finance Bank remains confident of meeting its FY27 guidance.

Ujjivan Small Finance Bank Shares May Rally Up To 38%, Says ICICI Securities — Here's Why
Management expects RoA to remain at 1.82%, driven primarily by operating leverage and lower credit costs with advances growth at 25% YoY in FY27, adds the brokerage.
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Ujjivan Small Finance Bank Ltd.
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NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Despite a leadership change of Mr. Sanjeev Nautiyal, incumbent MD, who has requested an early retirement due to health concerns, Ujjivan Small Finance Bank Ltd. remains confident of meeting its FY27 guidance.

Management expects RoA to remain at 1.8–2%, driven primarily by operating leverage and lower credit costs with advances growth at ~25% YoY in FY27.

Net interest margin is expected to remain around current levels of 8.5%. Further, taking cognisance of the lower-than-anticipated slippages and an encouraging asset quality trend in Jul'26 — especially in the MFI segment — it guided for 0.9–1% credit cost in FY27, and ICICI Securities believes it would settle at the lower end of the guidance.

ALSO READ: Sun Pharma Shares In Focus: US MFN Deal Eases Tariff Risk, Says ICICI Securities — Check Target Price

It is adequately capitalised to sustain growth momentum.

Key risks: 

  1. Lower-than-expected margins and
  2. slower-than-expected AUM growth, particularly due to slow growth in unsecured portfolio.

Click on the attachment to read the full report:

Isec Ujjivan Sfb.pdf
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