Ujjivan Small Finance Bank Ltd: Shares of Ujjivan Small Finance Bank Limited were in focus today on Monday. The company’s shares fell by 8% and fell at Rs 44.73 intraday. At this price there has been a decline of up to 20 percent on a year-on-year (YTD) basis. Its 52 week high price is Rs 62.99 and 52 week low price is Rs 36.61. The market cap of the company is Rs 8,857.28 crore.
Reason for decline in shares
A big fall in the share price was seen after Ujjivan SFB cut its FY2025 loan growth guidance by 500 basis points (bps) to 20 per cent. Additionally, SFB’s latest guidance for FY25 (2024-25) also estimates a return on equity of 22 per cent, about 200 bps lower than the previous estimate made in May.
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Expert opinion
Analysts broadly suggested on the technical setup that the stock looks ‘weak’ on the daily charts. “The stock looks weak on the daily chart. It may slip towards Rs 40 levels in the near term. Resistance will be at Rs 47,” said Ravi Singh, senior vice president (retail research), Religare Broking. The price-to-equity (P/E) ratio of the company’s stock is 7.29 while the price-to-book (P/B) value is 1.66. Earnings per share (EPS) stood at 6.63 and return on equity stood at 22.83.
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Change in management from July 1
Let us inform that recently Ujjivan Small Finance Bank Limited has announced the appointment of Sanjeev Nautiyal, former Deputy Managing Director of State Bank of India, as the Managing Director (MD) and Chief Executive Officer (CEO) of the bank. According to the bank, Nautiyal’s appointment will be effective from July 1, 2024. His appointment got the approval of the Reserve Bank of India for a period of three years. Nautiyal will join the bank before taking charge as its MD and CEO and will be named as interim chairman. Prior to this, in his 36-year long banking career, he also served as MD and CEO of SBI Life for two years.
