The uptick in prices was supported by strong volumes. At 10:40 am, more than 3.66 crore shares changed hands on the NSE.
On Thursday, July 27, the Bengaluru-based bank had posted a 60% year-on-year (YoY) rise in net profit at Rs 324 for the quarter ended June 30.
Its net interest income rose 32% YoY to Rs 793 crore, while the net interest margin was down 40 basis points to 9.2% due to the lagged effect of the deposit rate rise.
Gross non-performing assets stood at 2.4% against 5.9% a year back. Net NPA was at 0.06%.
The bank’s deposit base rose 45% YoY to Rs 26,660 crore. The ratio of current and savings account to total deposits rose 27% to 24.6% at the end of the reporting period.
Following Ujjivan’s earnings, several top brokerages recommended a ‘Buy’ stance on the counter. While Emkay retained its buy rating on for a target price of Rs 58, HDFC Securities has an ‘Add’ recommendation for a target of Rs 50. ICICI Securities was most bullish in terms of targets and pegged it at Rs 60.”Ujjivan Small Finance Bank continued to lead the SFB space with industry-leading profitability. RoA sustained at >3.5% for the fourth consecutive quarter with an average RoE of 30% during the same period. While profitability was boosted by provision write-backs during FY23, it still remained robust despite credit cost normalizing to 40 bps in Q1FY24 reflecting strong underlying business momentum,” ICICI Securities said.
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