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

Ujjivan Small Finance Bank

Mon 10:24

** 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%


 (Reporting by Payel Das in Bengaluru)
 ((Payel.das@thomsonreuters.com))