Ujjivan Small Finance Bank Q2 Results Review - Likely To Miss Guidance On All Parameters: ICICI Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Ujjivan Small Finance Bank Ltd.’s profit after tax fell 23% QoQ to Rs 2.3 billion versus Rs 3 billion QoQ, largely due to higher provisioning at Rs 1.5 billion versus Rs 1.1 billion QoQ driven by higher delinquencies in its MFI portfolio. Ujjivan’s strategy of de-risking its asset portfolio is playing out well, evident in robust 12% QoQ growth in secured asset versus muted 1% QoQ growth in overall advances. However, its unsecured portfolio still contributes >65% of the overall of portfolio, as on Sep-24. Management highlighted that stress in MFI shall subside only from Q4 FY25 and it poses a near-term risk on asset quality. As a result, management revised its credit cost guidance upward to 2.3–2.5% versus 1.7% earlier and hinted at lower-than-expected loan growth and lower NIM. Considering the lack of visibility around the revival in the MFI segment, we downgrade Ujjivan to Hold (earlier Buy) with a revised target price of Rs 36 (earlier Rs 60), valuing it at 1x (1.5x earlier) on Sep’25E book value per share..Click on the attachment to read the full report:.Mahindra Finance Q2 Results Review - Elevated Credit Cost Impacted Earnings: ICICI Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Ujjivan Small Finance Bank Q2 Results Review - Likely To Miss Guidance On All Parameters: ICICI Securities

Company's credit cost to inch up in H2, says the brokerage.

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Ujjivan Small Finance Bank Q2 Results Review - Likely To Miss Guidance On All Parameters: ICICI Securities

Company's credit cost to inch up in H2, says the brokerage.

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