Ujjivan Small Finance Bank was listed on the NSE on December 12, 2019. Ujjivan Small Finance Bank was founded in 2017 as part of Ujjivan Financial Services, which began in 2005. In this article, we will explore Ujjivan Small Finance Bank’s growth potential and Ujjivan Small Finance Bank share price target from 2025 to 2050.
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About Ujjivan Small Finance Bank
Ujjivan Small Finance Bank focuses on providing banking services to people who do not typically have access to formal banking, such as small business owners, low-income individuals, and rural customers. It provides savings accounts, loans, fixed deposits, and other financial services to help people manage their money more effectively.
Ujjivan Small Finance Bank Business Model
- Loans for Small Businesses and Individuals: The bank provides loans to small businesses, shop owners, and individuals.
- Micro Loans: It offers small loans to low-income and rural communities who are unable to obtain loans from large banks.
- Housing Loans: It provides home loans to people who need money to buy or build a house.
- Vehicle and Gold Loans: It provides loans for the purchase of vehicles as well as loans against gold.
- Fees and charges: ATM withdrawal fees, account maintenance fees, and late payment penalties all contribute to the bank’s profits.
- Insurance & Investment Products: It earns commissions by selling other companies’ insurance and investment products.
Ujjivan Small Finance Bank Fundamental Analysis
| Stock Name | Ujjivan Small Finance Bank Ltd. |
|---|---|
| NSE Symbol | UJJIVANSFB |
| Market Cap | ₹ 6896 Cr. |
| 52W High | ₹ 56.7 |
| 52W Low | ₹ 30.8 |
| Stock P/E | 7.09 |
| Book Value | ₹ 30.0 |
| Dividend Yield | 4.21 % |
| ROCE | 11.1 % |
| ROE | 26.7 |
| Face Value | ₹ 10.0 |
| Shareholders | Mar 2023 | Mar 2024 | Dec 2024 |
|---|---|---|---|
| Promoters | 73.67% | 73.52% | 0.00% |
| FIIs | 1.96% | 3.48% | 17.87% |
| DIIs | 8.35% | 2.33% | 6.58% |
| Public | 16.00% | 20.67% | 75.54% |
| No. of Shareholders | 2,78,288 | 6,90,424 | 11,38,626 |
Key Factors Driving Ujjivan Small Finance Bank’s Future Growth
- Strong Focus on Small and Micro Loans: Ujjivan Small Finance Bank focuses on loans for small businesses, small businesses, and lower-income groups, which are in high demand and have few credit options.
- Increasing Branch Network: In order to reach more customers and grow its business, Ujjivan Small Finance Bank is opening new branches in various cities and rural areas.
- Expanding Digital Banking Services: Ujjivan Small Finance Bank is improving its mobile app, internet banking, and digital payment options to attract more customers and make banking easier.
- Strong Customer Base in Rural Areas: Ujjivan Small Finance Bank already has a strong presence in rural and semi-urban areas, which helps in finding new customers in areas where larger banks are less accessible.
- Supportive Government Policies: Government policies promoting financial inclusion and small business growth help Ujjivan Small Finance Bank gain customers and expand its services.
- Increasing Focus on Housing and MSME Loans: Ujjivan Small Finance Bank is increasing loans for housing and small businesses, which will benefit long-term growth and profits.
Pros of Ujjivan Small Finance Bank
- Strong Sales Growth: Ujjivan Small Finance Bank has achieved a strong sales growth of 26% CAGR over the last three years.
- Strong Profit Growth: Ujjivan Small Finance Bank has achieved a strong profit growth of 424% CAGR over the last three years.
- Low P/B Ratio (Undervalued Stock): Ujjivan Small Finance Bank has a low Price to Book Value (P/B) ratio of 1.19, which indicates that it is trading close to its intrinsic value and may be undervalued.
- Attractive Valuation: Ujjivan Small Finance Bank is currently trading at a PE ratio of 7.09, indicating a fair valuation compared to its earnings.
- Increase in DIIs Holding: Domestic Institutional Investors (DIIs) have increased their holding to 6.58% in December 2024 from 6.50% in September 2024, which indicates growing confidence in the Ujjivan Small Finance Bank’s future potential by the DIIs.
Cons of Ujjivan Small Finance Bank
- Low Return on Capital Employed (ROCE): Over the last five years, Ujjivan Small Finance Bank’s average ROCE is 7.78%, which shows that Ujjivan Small Finance Bank is not using its capital efficiently to generate profits.
- Decrease in FIIs Holding: Foreign Institutional Investors (FIIs) have reduced their holding to 17.87% in December 2024 from 20.62% in September 2024, indicating a decline in FII’s confidence in the Ujjivan Small Finance Bank’s future growth prospects.
| Years | Target Price |
|---|---|
| Ujjivan Small Finance Bank Share Price Target 2025 | ₹45 to ₹55 |
| Ujjivan Small Finance Bank Share Price Target 2026 | ₹53 to ₹70 |
| Ujjivan Small Finance Bank Share Price Target 2027 | ₹64 to ₹90 |
| Ujjivan Small Finance Bank Share Price Target 2028 | ₹76 to ₹120 |
| Ujjivan Small Finance Bank Share Price Target 2029 | ₹90 to ₹160 |
| Ujjivan Small Finance Bank Share Price Target 2030 | ₹110 to ₹200 |
| Ujjivan Small Finance Bank Share Price Target 2035 | ₹220 to ₹610 |
| Ujjivan Small Finance Bank Share Price Target 2040 | ₹440 to ₹1840 |
| Ujjivan Small Finance Bank Share Price Target 2050 | ₹1770to ₹11060 |
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
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