Geojit Recommends Multibagger Banking Stock To Buy, Target Price Rs 62

Leading brokerage firm Geojit has recommended investors to buy Ujjivan Small Finance Bank Ltd (USFL) shares and assigned target price of Rs 62 per share. Current market price of Ujjivan Small Finance share is Rs 49.83 per share. If you buy Ujjivan Small Finance stock now, you can fetch potential return of 26.5% return. Ujjivan Small Finance shares delivered multibagger returns to shareholders in last 1-year offering 105% upside. Check details given below:

Ujjivan Small Finance Stock Outlook & Return In last Few Years: Last trading price of Ujjivan Small Finance stock is Rs 49.83 per share with intraday fall of 0.30%. Its 52-week high price is quoted at Rs 53.10 per share and 52-week low price is quoted at Rs 21.20 apiece. Ujjivan Small Finance has a market capitalisation of Rs 9742.02 crore. In last 3-months, Ujjivan Small Finance shares offered shareholders return of 36%, gained 86% in last 6-months, provided 67% return YTD, and the stock witnessed a rally of 105% in last 1-year. In last 2-years, Ujjivan Small Finance stock offered 163% upside and 48% rise in last 3-years.

Ujjivan Small Finance Financials: The company for the quarter ended June 30, 2023 declared its standalone income at Rs 1464.10 crore, up 7.36% as against its last quarter total income of Rs 1363.89 crore. The company announced its recent quarter net profit after tax at Rs 324.07 crore.

Ujjivan Small Finance Valuation: According to Geojit, "Considering the strong business performance, we upgrade our rating to BUY based on 1.8x FY25E Adj.BVPS with a target price of Rs 62. UFSL has shown strong business momentum with improved asset quality and strong loan growth. The bank is moving ahead of their guidance by achieving 25% loan growth. Though cost pressure is expected to trim the margins, management is confident in maintaining NIM in a healthy range above 9%."

Ujjivan Small Finance About: It is a wholly owned subsidiary of Ujjivan Financial Services Ltd. USFL is the 3rd largest SFB with a loan book size of Rs.25,326 crore and a deposit base of Rs.26,660 crore. Ujjivan Small Finance Bank Limited is a mass market focused bank in India, catering to financially unserved and under-served segments and committed to building financial inclusion in the country.

Disclaimer

The stock has been picked from the brokerage report of Geojit Financial Services. 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.