Ujjivan Small Finance Bank - Strong Business Momentum To Continue: Geojit

"BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Geojit Research Report.Ujjivan Small Finance Bank Ltd., a wholly owned subsidiary of Ujjivan Financial Services Ltd., serves over 76 lakh customers through 661 branches. Ujjivan Financial Services is the third largest SFB with a loan book size of Rs 25,326 crore and a deposit base of Rs 26,660 crore. Investment thesisAdvance growth is expected to remain strong at 25%, led by both microfinance and non-micro finance book with strong customer addition and brand building strategies.Considering strong loan growth, an improving cost to income ratio and lower credit costs, Ujjivan Financial Services is expected to record an return on equity of 25% in FY24 and 23% in FY25, well above the management guidance.The proposed reverse merger with the parent company is expected to be completed within 2024. Asset quality continues to witness improvement, with gross/net non-performing asset declining to 2.40%%/0.06%, respectively. Considering the strong business performance, we upgrade our rating to 'Buy' based on 1.8 times FY25E adjusted book value per share with a target price of Rs 62..Click on the attachment to read the full report:.NCC - At All-Time High Order Book: Geojit.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Ujjivan Small Finance Bank - Strong Business Momentum To Continue: Geojit

Enhanced profitability aided by healthy credit growth and lower cost.

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