Share of Ujjivan Small Finance Bank Limited is currently trading at around Rs.32/-. Existing as well as Prospective Investors are asking for Ujjivan Share Price Target 2025,2030,2035 and 2040. In this article, we will discuss about the business prospects and financial performance of the Bank and based on our discussion and analysis, will tell you the Ujjivan Share Price Target 2025,2030,2035 and 2040.
Discussion & Analysis of Business & Financial performance with future business prospects of Ujjivan Small Finance Bank Ltd:
In the third quarter of the fiscal year 2024-25, Ujjivan Small Finance Bank Ltd. (USFB) reported a net profit of ₹109 crore, marking a 64% decline from the ₹304 crore recorded in the same period the previous year.
This downturn was influenced by a notable contraction in Net Interest Margin (NIM), reduced other income, and elevated credit costs.
Despite the profit decline, USFB’s total income for the quarter rose to ₹1,763 crore, up from ₹1,491 crore in the corresponding quarter of the previous year.
The bank’s Net Interest Income (NII) stood at ₹886.74 crore, reflecting a modest 3.12% year-on-year increase.
A significant strategic shift was observed in USFB’s loan portfolio. The bank accelerated its focus on secured lending products, with the secured loan book’s contribution increasing from 31% in June to 39% by December 2024. This growth was primarily driven by segments such as Affordable Housing Loans, Micro, Small, and Medium Enterprises (MSME) loans, and Financial Institutions Group (FIG) loans.
However, this transition led to a flat gross loan book sequentially, attributed to a sharp decline in Group Loans and stagnation in Individual Loans.
On the liabilities front, USFB experienced a 16.3% year-on-year growth in deposits during Q3 FY25, indicating enhanced customer trust and an expanding depositor base.
The bank maintained a robust capital adequacy ratio of 23.9%, underscoring its strong financial position.
Looking ahead, USFB’s strategic emphasis on diversifying its portfolio towards secured assets is poised to stabilize earnings and mitigate risks associated with unsecured lending. The bank’s extensive network in rural India positions it well to tap into underserved markets, offering tailored banking and financial products.
Analysts have set an average target price of ₹47.80 for USFB’s stock, suggesting a potential upside of approximately 52% from the last recorded price of ₹31.45.
In summary, while USFB faced challenges in Q3 FY25, its strategic realignment towards secured lending and growth in deposits reflect a proactive approach to strengthening its financial foundation and capitalizing on future opportunities.
Share Price Targets:
Ujjivan Share Price Target 2025
Based on the above discussion and analysis, the share price of Ujjivan Small Finance Bank Ltd is likely to touch the level of around Rs.35-40 in 2025
Ujjivan Share Price Target 2030
Based on the above discussion and analysis, the share price of Ujjivan Small Finance Bank Ltd is likely to touch the level of around Rs.60-70 in 2030
Ujjivan Share Price Target 2035
Based on the above discussion and analysis, the share price of Ujjivan Small Finance Bank Ltd is likely to touch the level of around Rs.110-130 in 2035
Ujjivan Share Price Target 2040
Based on the above discussion and analysis, the share price of Ujjivan Small Finance Bank Ltd is likely to touch the level of around Rs.210-250 in 2040
Disclaimer: Investments in Capital Market/Share Prices are subject to market fluctuations and are dependent on several factors. These predictions are based on the current market conditions and the future market expectations. Investors are advised to take into consideration all these factors before making any investment in Capital Market. This article should not be treated as Investment advisory and is for general Guidance & Educational purpose only. We keep revising our share price targets based on the latest information available with us. Please keep visiting our website regularly to keep yourself updated. MoneyInsight does not offer investment advice and does not encourage any action based on its content.
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