Ujjivan Small Finance Bank Q3 Results Review - Growth Outlook Strong, Maintain 'Buy': Axis 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..Axis Securities Report.New product scale-up in the secured business along with focused efforts on building the liability effort should keep Ujjivan Small Finance Bank Ltd.'s business growth momentum strong over the medium term.The reverse merger is nearing its completion and is expected to conclude by Q4 FY24 post the requisite approvals. We largely maintain our net interest income estimates, while we revise our earnings estimations downwards by 2-3% over FY24-25E to reflect a slower-than-anticipated opex ratio improvement..Valuation and recommendationUjjivan Small Finance Bank currently trades at 1.5 times September 2025E adjusted book value and we value Ujjivan Small Finance Bank at 1.8 times September 25E adjusted book value to arrive at a target price of Rs 64, implying an upside of 20% from current market price. We maintain our 'Buy' recommendation on the stock..Key risks to our estimates and target priceThe key risk to our estimates remains a slowdown in overall credit growth which could potentially derail our earnings estimates. The scalability of new products and secured book remains a key monitorable..Click on the attachment to read the full report:.CarDekho's Amit Jain Wants Four To Six Quarters Of Profitability Before IPO.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 Q3 Results Review - Growth Outlook Strong, Maintain 'Buy': Axis Securities

The scalability of new products and secured book remains a key monitorable.

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Ujjivan Small Finance Bank Q3 Results Review - Growth Outlook Strong, Maintain 'Buy': Axis Securities

The scalability of new products and secured book remains a key monitorable.

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