Street View: Ujjivan Small Finance Bank's quarterly beat lifts outlook

By Reuters News

** Ujjivan Small Finance Bank UJJI.NS is seen benefiting from strong loan growth, improving secured-loan mix and lower credit costs after quarterly profit beat estimates, brokers say

** Bank reported second-quarter profit after tax of 3.65 billion rupees, up nearly 200% Y/Y


Q2 BEAT LIFTS ROA OUTLOOK, ESTIMATES


** ICICI Securities ("buy"; PT: 95 rupees) says strong earnings momentum drove return on assets to 2.4%; sees Ujjivan exceeding FY27 ROA guidance of 1.8%-2.0%

** HSBC ("buy"; PT: 90 rupees) says Ujjivan beat its Q2 PAT estimate by 14%; raises FY27-FY29 PAT estimates by 9%-17% on stronger AUM growth, efficiency gains and a preferential issue

** Emkay Global ("buy"; PT: 90 rupees) says Ujjivan remains a strong play on the microfinance recovery story, with ROA likely to rise to 2.0%-2.1% over FY27-FY29

** Ambit Capital ("buy"; PT: 85 rupees) says Ujjivan remains its top pick for microfinance recovery and secured-led growth, after raising FY27-FY29 PAT estimates by 25%/13%/10%

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.