154% Rally In 1-Yr: Banking Stock Sets Record Date For Dividend, Gets Buy Call For TP Of Rs 45

Banking company, Ujjivan Small Finance Bank Ltd has fixed July 14, 2023 as the record date for dividend. Ujjivan Small Finance Bank Ltd shares delivered multibagger returns in last 1-year at 154%. In last 3-months only, Ujjivan Small Finance Bank stock jumped 57%. Current market price of Ujjivan Small Finance Bank share is Rs 41.54 per share on BSE. Axis Securities has given buy call to Ujjivan Small Finance Bank stock with target price of Rs 45 per share. Check details below:

Ujjivan Small Finance Bank Fixes Record Date For Dividend: According to the BSE filing of the bank dated July 6, 2023, "With reference to our intimation no. USFB/CS/SE/2023-24/30 dated June 14, 2023, wherein we had intimated that the record date for the purpose of determining the entitlement of members to receive Final Dividend on Equity Shares of the Bank, if approved in the upcoming Annual General Meeting, will be Friday, July 14, 2023, we further submit the announcement in form of corporate action for the same."

Earlier this year on May 11, 2023 Board of Directors of the Bank, in its meeting held on May 11, 2023, has, inter alia, considered and approved the recommendation of Final Equity Dividend of 5% i.e. Rs.0.5 each, per equity share of face value Rs. 10 each, out of the net profits for the year ended March 31, 2023, subject to the approval of the shareholders at the ensuing Annual General Meeting ("AGM") of the Bank.

Ujjivan Small Finance Stock Outlook & Return: Current market price of Ujjivan Small Finance share is Rs 41.54 per share with intraday rally of 1.14%. The stock's 52-week high price is Rs 42.80 per share and 52-week low price is Rs 15.65 per share, respectively. Its market capitalisation is Rs 8131.87 crore. Ujjivan Small Finance shares offered return of 41% in last 6-months, 31% in last 2-years, and 12% in last 3-years.

Ujjivan Small Finance Financial Outlook: The banking company for the quarter ended March 31, 2023 declared its standalone total income at Rs 1363.89 crore, up 11.74% from preceding quarter total income of Rs 1220.54 crore. It announced its latest quarter net profit after tax at Rs 309.50 crore.

Valuation: According to Axis Securities report dated June 12, 2023, buy call has been assigned to Ujjivan Small Finance stock with target price of Rs 45 per share. If you buy Ujjivan Small Finance share at current market price of Rs 41.54 apiece, you can fetch potential return of 8.33%.

According to the analyst, "Thus, we reiterate our BUY recommendation on the stock, valuing UJSFB at 1.6x Sep'24E ABV to arrive at a target price of Rs 45/share."

Ujjivan Small Finance About: Ujjivan Small Finance Bank (USFB) Limited is among the leading small finance banks in the country. As a mass market bank, it remains committed to serve the unserved and underserved segments through financial and digital inclusion, according to its official website.

Disclaimer: The stock has been picked from the brokerage report of Axis Securities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.