Buy Ujjivan SFB At Rs 53.10, Target Rs 60, Stop-Loss At Rs 49.5: Choice Broking

Sumeet Bagadia, Executive Director of Choice Broking has initiated a buy call on the shares of Ujjivan Small Finance Bank. Based in Bangalore, Ujjivan Small Finance Bank Limited is an Indian small finance bank that commenced business operations on February 1st, 2017. The bank's market value at the end of Thursday's closing session was Rs 10,418.14 Cr. During yesterday's trading session on the BSE, the shares of Ujjivan Small Finance Bank closed 3.91% higher at Rs 53.21 apiece.

Ujjivan Small Finance Bank Share Price Target

Buy UJJIVANSFB @ 53.10 and add up to 51.5, with a target of 60 and a stop loss at 49.5, duration: 1 month to 3 months

Ujjivan Small Finance Bank (UJJIVANSFB) exhibits a robust technical outlook with a formidable support base around 50, aligned with its 200-day Exponential Moving Average (EMA). Currently trading at 53.10, the stock has demonstrated a noteworthy bounce-back from these support levels. A modest resistance near 55.80, proximate to its 50-day EMA, awaits a breakthrough, paving the way for an upward trajectory towards the target of 60 and beyond.

Strategic buying opportunities are identified on any potential dips, particularly up to 51.5 levels, with a recommended stop loss at 49.5, just below the strong support levels. The momentum indicator, Relative Strength Index (RSI), rebounding from the lower levels of 28.60, currently stands at 39.98, signifying renewed strength.
In conclusion, a comprehensive strategy involves buying UJJIVANSFB at the current market price of 53.10, with additional accumulation on dips to 51.5. A stringent stop loss at 49.5 is advised for risk management, targeting a price objective of 60, aligning with the positive technical indicators.

Ujjivan Small Finance Bank Financials

For the quarter that ended in December 2023, Ujjivan Small Finance Bank recorded a profit of Rs 300 crore, a y-o-y gain of 2.34 per cent over the same quarter the previous year at Rs 293 crore. Operating profit for the bank climbed to Rs 45,730 crore from Rs 38,892 crore in the third quarter of the previous year, a 17.5% growth. There were 29 new branches launched this quarter, bringing the total number of branches to 729.

The bank's net advances rose 80% to Rs 6,601 crore, while its deposits jumped more than Rs 5,000 crore, up 163% YoY. Its total income increased by 208% to Rs 438 crore, of which net income climbed by 90% to Rs 328 crore. Net interest income went up by 71% YoY to Rs 257 crore, as per a PTI report.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.