Sharescart Research Club logo

Key Financials Snapshot

TTM · Consolidated · ₹ in Cr
Market Cap
₹7190 Cr.
Stock P/E
6.3
P/B
1.8
Current Price
₹590.4
Book Value
₹ 321.7
Face Value
10
52W High
52W Low
Dividend Yield
0.85%

Ujjivan Financial Overview

Business

Ujjivan Financial Services Ltd. is a non-deposit taking core investment company and the holding company for Ujjivan Small Finance Bank (USFB). Its core business involves providing financial services primarily to the unserved and underserved segments of India's population. Ujjivan Small Finance Bank, its main operating entity, transitioned from a microfinance institution (MFI) to a small finance bank (SFB). The bank offers a range of products including microbanking loans (Joint Liability Group loans, individual loans), affordable housing loans, vehicle finance, gold loans, and secured business loans. It also offers liability products such as savings accounts, current accounts, and fixed deposits. The company makes money primarily through interest income generated from its loan portfolio and fees for various banking services.

Revenue Mix

The primary operating segment is Ujjivan Small Finance Bank. Within its loan portfolio, the key segments typically include:

Microbanking: This remains a significant segment, encompassing JLG (Joint Liability Group) loans and individual micro-loans, catering to its traditional customer base.

Retail Lending: Diversification into other asset classes like affordable housing loans, vehicle finance, gold loans, and secured business loans to MSMEs (Micro, Small, and Medium Enterprises).

While specific revenue percentages fluctuate, Ujjivan has been actively working to diversify its loan book away from an over-reliance on microbanking. Liability products (deposits) are crucial for funding and reducing borrowing costs.

Industry

Ujjivan operates in the highly regulated Indian financial services sector, specifically within the Small Finance Bank (SFB) sub-segment. The industry is characterized by its focus on financial inclusion, catering to segments often overlooked by larger commercial banks. It faces competition from other SFBs (e.g., Equitas, AU, Suryoday), microfinance NBFCs, and increasingly, some large public and private sector banks expanding their reach into these segments. Ujjivan is one of the more established SFBs, having successfully transitioned from a large MFI. Its positioning is built on a deep understanding of its target customer base, an extensive branch network, and a proven ability to underwrite and recover loans from the unbanked and underbanked population.

MOAT

Distribution Network & Reach: Ujjivan possesses an extensive branch network and a large field staff, particularly in semi-urban and rural areas. This physical presence is crucial for reaching its target demographic, building relationships, and managing collections, which is hard for new entrants or digital-only players to replicate quickly.

Underwriting Expertise: Decades of experience as an MFI have provided Ujjivan with deep data and expertise in assessing the creditworthiness of unbanked and informal sector borrowers, a skill set not easily developed by traditional banks.

Customer Relationships: Long-standing relationships and trust built with its microfinance customer base, leading to higher customer retention and cross-selling opportunities for new banking products.

Scale among SFBs: As one of the larger and more mature SFBs, it benefits from a reasonable scale of operations, allowing for better efficiency and investment in technology compared to smaller peers.

Growth Drivers

Financial Inclusion Mandate: The ongoing push for financial inclusion by the Indian government and regulators provides a vast untapped market for Ujjivan's services.

Diversification of Loan Book: Successful expansion into higher-ticket, secured loan products (housing, vehicle, MSME) can drive growth, improve asset quality, and enhance profitability by reducing concentration risk.

Digital Adoption: Leveraging technology for customer onboarding, loan origination, collections, and enhancing customer experience can improve efficiency and reach.

Geographic Expansion: Deepening penetration in existing operational areas and cautious expansion into new, underserved geographies.

Economic Revival: General economic growth in India, particularly in consumption and informal sectors, directly benefits its target customer base and loan demand.

Risks

Credit Risk: High exposure to the microfinance segment makes it susceptible to asset quality deterioration due to economic downturns, localized events (e.g., floods, political unrest), and borrower income volatility.

Regulatory Changes: Being a regulated entity, changes in RBI policies, capital adequacy norms, interest rate caps on microfinance loans, or other prudential guidelines can significantly impact operations and profitability.

Competition: Intense competition from other SFBs, NBFCs, and some commercial banks can lead to pressure on Net Interest Margins (NIMs) and market share.

Operational Risks: Managing a large field force, cash handling, and preventing fraud across a wide geographic spread present significant operational challenges.

Interest Rate Volatility: Changes in the broader interest rate environment can impact both funding costs (deposit rates) and lending rates, affecting NIMs.

Management & Ownership

Ujjivan Financial Services Ltd. is the promoter and holding company of Ujjivan Small Finance Bank, holding a significant majority stake. The management team has extensive experience in the financial inclusion and banking sectors, having successfully navigated the transition from an MFI to an SFB. They are generally perceived as professional with a strong understanding of the target market. The ownership structure includes institutional investors, FIIs, and public shareholders, typical for a listed entity in India.

Outlook

Ujjivan is poised to benefit from India's structural tailwinds in financial inclusion and the formalization of the economy. The successful diversification of its loan book beyond microfinance and improved asset quality management will be critical for sustained growth and profitability. The bank's established branch network and underwriting expertise for underserved segments provide a strong foundation. However, it operates in a competitive and cyclical environment. Maintaining stringent credit underwriting standards, efficient collections, and agile adaptation to regulatory changes will be essential to mitigate risks associated with its target segments. The ability to grow its liability franchise (deposits) cost-effectively will also be a key determinant of its future performance and ability to generate stable returns.

Ujjivan Financial Share Price

Live · BSE / NSE · Inception: 2004
| |
Volume
Price

Key Financials — Profit & Loss

₹ in Cr · Consolidated · annual

Ujjivan Financial Quarterly Results

#(Fig in Cr.) Sep 2021 Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023 Jun 2023 Sep 2023 Dec 2023
Operating Revenue 736 708 850 1008 1040 1144 1231 1375 1496 1576
Other Income -4 24 41 50 60 50 97 81 62 59
Total Income 732 732 892 1058 1100 1194 1328 1456 1558 1635
Total Expenditure 521 677 409 327 285 365 516 510 530 600
Operating Profit 211 56 483 731 814 829 813 946 1028 1035
Interest Expense 262 261 282 313 337 391 453 499 572 617
Depreciation 40 38 38 39 40 43 42 39 42 49
Profit Before Tax -91 -243 163 380 437 396 318 408 414 370
Provision for Tax -23 -61 44 85 122 98 86 109 105 88
Profit After Tax -68 -182 119 295 315 298 232 298 309 281
Adjustments 11 30 -20 -49 -58 -78 -65 -78 -83 -74
Profit After Adjustments -57 -151 99 246 257 220 167 220 226 208
Adjusted Earnings Per Share -4.7 -12.4 8.1 20.2 21.1 18.1 13.7 18.1 18.6 17.1

Ujjivan Financial Profit & Loss

#(Fig in Cr.) Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 TTM
Operating Revenue 1349 1519 1944 2860 3066 2995 4421 5678
Other Income 48 31 71 110 115 99 358 299
Total Income 1398 1550 2015 2969 3181 3094 4780 5977
Total Expenditure 521 862 1023 1273 2209 2172 1593 2156
Operating Profit 877 688 992 1697 972 922 3187 3822
Interest Expense 543 602 727 1115 1121 1071 1493 2141
Depreciation 13 41 61 166 170 155 163 172
Profit Before Tax 322 45 204 416 -319 -304 1531 1510
Provision for Tax 114 19 54 117 -80 -73 391 388
Profit After Tax 208 26 150 299 -239 -231 1140 1120
Adjustments 0 0 0 -16 40 39 -250 -300
Profit After Adjustments 208 26 150 282 -199 -192 891 821
Adjusted Earnings Per Share 17.4 2.1 12.4 23.2 -16.3 -15.8 73.2 67.5

Ujjivan Financial Balance Sheet

#(Fig in Cr.) Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023
Shareholder's Funds 1756 1732 1878 2840 2512 2323 3224
Minority's Interest 0 0 0 331 438 400 1019
Borrowings 2839 7600 11507 14181 16293 20764 30281
Current Liability 4107 171 615 1327 921 892 914
Other Liabilities & Provisions 10 -73 -50 -57 -298 -370 -284
Total Liabilities 8712 9430 13950 18622 19866 24009 35153
Loans 0 0 0 0 0 0 0
Investments 357 0 0 0 97 13 13
Fixed Assets 137 194 282 799 718 666 684
Other Loans 1611 19 23 28 30 33 40
Other Non Current Assets 33 4 2 21 5 6 18
Current Assets 6574 9213 13642 17775 19015 23291 34399
Total Assets 8712 9430 13950 18622 19866 24009 35153

Ujjivan Financial Cash Flow

#(Fig in Cr.) Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023
Opening Cash & Cash Equivalents 447 714 576 1079 1340 1934 2155
Cash Flow from Operating Activities -583 2190 -3248 -2464 1612 2826 2073
Cash Flow from Investing Activities -1559 113 -448 -1087 -215 -1785 -4554
Cash Flow from Financing Activities 2409 -2441 4198 3812 -803 -819 2640
Net Cash Inflow / Outflow 267 -137 503 261 594 222 159
Closing Cash & Cash Equivalent 714 576 1079 1340 1934 2155 2314

Ujjivan Financial Ratios

# Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023
Earnings Per Share (Rs) 17.4 2.15 12.42 23.21 -16.34 -15.75 73.2
CEPS(Rs) 18.45 5.57 17.42 38.21 -5.69 -6.2 107.09
DPS(Rs) 0.8 0.5 1.3 0.8 0 0 5
Book NAV/Share(Rs) 146.88 141.67 152.28 228.56 200.08 185.42 259.88
Net Profit Margin 15.39 1.71 7.74 10.44 -7.8 -7.7 25.79
Operating Margin 64.06 42.54 47.89 53.53 26.15 25.61 68.39
PBT Margin 23.84 2.94 10.5 14.54 -10.42 -10.15 34.62
ROA(%) 2.38 0.29 1.29 1.83 -1.24 -1.05 3.85
ROE(%) 11.84 1.5 8.46 12.92 -9.17 -9.83 42.09
ROCE(%) 10.61 7.38 8.07 9.82 4.42 3.66 10.69
Price/Earnings(x) 24.37 160.95 28.02 6.4 0 0 3.5
Price/Book(x) 2.89 2.44 2.28 0.65 1.05 0.55 0.99
Dividend Yield(%) 0.19 0.14 0.37 0.54 0 0 1.95
EV/Net Sales(x) 7.92 7.37 7.69 5.27 5.3 6.62 6.99
EV/Core EBITDA(x) 12.19 16.27 15.09 8.88 16.72 21.49 9.7
Interest Earned Growth(%) 0 12.57 28 47.09 7.21 -2.31 47.62
Net Profit Growth 0 -87.5 479.71 98.52 -180.06 3.6 594.7
EPS Growth(%) 0 -87.66 478.26 86.97 -170.38 3.58 564.67
Interest Coverage(x) % 1.59 1.07 1.28 1.37 0.72 0.72 2.03

Growth Rates

Compounded annual
# 1 Year 3 Year 5 Year 10 Year
Sales CAGR +48% +16% +24%
Operating Profit CAGR +246% +23% +36%
PAT CAGR +56% +113%
Share Price CAGR +114% +17% +23% +5%
ROE Average +42% +8% +9% +8%
ROCE Average +11% +6% +7% +8%

Ujjivan Financial Shareholding Pattern

Latest · Mar 2024
100% held
Promoters 0 %
FII 35.34 %
DII (MF + Insurance) 7.36 %
Public (retail) 100 %
# Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023 Jun 2023 Sep 2023 Dec 2023 Mar 2024
Promoter 0000000000
FII 26.6528.2230.7130.5731.8231.1440.4836.4734.9835.34
DII 12.6912.4310.671.351.192.133.866.027.437.36
Public 100100100100100100100100100100
Others 0000000000
Total 100100100100100100100100100100

Ujjivan Financial Peer Comparison

Finance Term Lending Edit Columns

Ujjivan Financial Quarterly Price

10-year quarterly close · BSE
Show Value Show %

News & Updates

See more…

Ujjivan Financial Pros & Cons

Pros

  • Company has delivered good profit growth of 113% CAGR over last 5 years

Cons

  • Promoter holding is low: 0%.
  • Company has a low return on equity of 8% over the last 3 years.
Want to Start Investing in Top Unlisted Stocks?

Our experts help you choose the right stocks based on performance, risk, and growth potential.

whatsapp