Ujjivan Small (UJJIVANSFB)

FairStock Score: 45/100 — MIXED

Score breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Profit growth of 70.98% with latest quarter net profit ₹186 Cr on revenue ₹1,752 Cr shows sharp operating leverage.
• PEG ratio of 0.56 suggests the market price is not excessive if current earnings momentum continues.
• Piotroski F-Score of 7/9 indicates improving financial fundamentals.
• Trading at ₹58.51, about 20% below the 52-week high of ₹73.02, offers some margin of safety if the turnaround persists.
• P/B of 1.96 is moderate for a banking franchise, though not cheap given current ROE.

Concerns

• ROE of 8.40% is mediocre, and a P/B of 1.96 leaves little room for value creation unless returns improve significantly.
• Trailing P/E of 22.81 is demanding when sales growth is only 10.11%.
• Zero promoter holding and zero dividend yield raise questions about insider alignment and minority shareholder returns.
• Profit growth of 70.98% may come from a low base and may not be repeatable; asset quality remains a key unknown.

AI Analysis

When I evaluate a bank, I first ask whether it has a durable moat and a loan book I can understand. Ujjivan Small is a small finance bank serving customers traditional banks often ignore. That is a useful niche, but it is not an economic franchise with real pricing power. The balance sheet quality cannot be judged from these ratios alone, but the numbers tell me the business is recovering rather than compounding steadily. Sales are up 10.11% while profits surged 70.98%; the latest quarter net profit of ₹186 Cr on revenue of ₹1,752 Cr implies a much healthier margin. Yet the trailing P/E of 22.81 and P/B of 1.96 demand continued improvement. At ₹58.51, the market is paying ₹1.96 for every ₹1 of book value while the bank earns only 8.40% ROE. Graham would say this is not obviously cheap; a low ROE cannot justify a high multiple unless returns improve materially. The F-score of 7/9 and PEG of 0.56 are encouraging, but profit growth from a low base can mislead. Zero promoter holding and zero dividend yield also leave me uncomfortable; when insiders own no stock and no cash is returned, I want stronger evidence of disciplined capital allocation. This looks more like a turnaround than a wonderful business. If the annualized latest-quarter profit becomes sustainable, ROE would climb and the current price would be reasonable; if stress returns, the margin could disappear. I would wait for proof of sustained profitability and better governance before committing.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer