Ujjivan Small Finance Bank Limited

Financial Services — Banks - Regional · NSE

₹63.25−₹1.25 (−1.94%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Constructive picture on fundamentals. Profitability, leverage and growth metrics are broadly healthy on this snapshot. That said, valuation should still be checked against direct sector peers (not just the generic P/E bands used here) before treating this as a buy signal.

Understanding the Business

Company site ↗

The 60-second version of Ujjivan Small Finance Bank Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Ujjivan Small Finance Bank Limited provides various banking and financial services in India. The company operates through Treasury, Retail Banking, and Corporate/Wholesale Banking segments.

IndustryBanks - Regional

SectorFinancial Services

Employees26,555

Annual revenue₹4,907 Cr

How does it make money?

Turns over ₹4,907 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit. Each of its 26,555 employees supports ₹18.5 lakh of revenue a year, the signature of a people-led business.

Net margin14.1%

Revenue / employee₹18.5 lakh

Who are its competitors?

The closest listed comparisons in its industry are HDFC BANK LTD, ICICI BANK LTD., KOTAK MAHINDRA BANK LTD, AXIS BANK LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

HDFC BANK LTDP/E 15.9x · ROE 13.8%

ICICI BANK LTD.P/E 18.1x · ROE 16.5%

KOTAK MAHINDRA BANK LTDP/E 21.9x · ROE 11.2%

AXIS BANK LIMITEDP/E 14.5x · ROE 13.4%

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

ROE16.6%

Peer median ROE13.8%

What is the outlook?

19 analysts covering the stock expect revenue to grow about 18.8% and earnings to grow about 7.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+18.8%

Est. earnings growth+7.3%

Analysts19

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +49% while net margin moved -58% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+49%

Margin effect-58%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 14.3% is steady
✗ Profit has declined at 14.3% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

70/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

74/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

10.9x

3Y Median

9.3x

40 monthly readings · mean 10.8x · range 4.9x–19.7x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 17% above its 3y median of 9.3x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 36% below the peer median of 17.0x.

vs. its own history

Fair

9.3x median over 40 months · +17%

vs. sector peers

Cheap

17.0x median of 4 peers · -36%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

10.9x

P/B

1.64x

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 26.1% to 10.2% — each rupee of shareholder capital earns less than it did.

Red Flags

2 items require attention · 2 watch

🟡Profit is decliningFinancial
Net profit is down 37% over 3 years.
🟡Low reported insider holdingOwnership
Reported insider holding is 0.0%. For Indian companies this field is an unreliable proxy — check the official promoter shareholding in the exchange filing.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 36% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Returns on shareholder capital are falling
ROE has dropped from 26.1% to 10.2%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 11% a year✓ 14.3% CAGR
Latest reported year was 52.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2Return on equity stays above 15%✓ 16.6%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 9.3x✓ 10.9x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

9 / 10 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 4 neutral · 0 weak

Market Cap

₹12,353 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.9x

Cheap

Cheap against the generic band

P/B Ratio

1.64x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹5.81

Profitable

Profitable on a per-share basis

ROE

16.6%

Strong

Strong capital efficiency

ROCE

Not meaningful

N/A for lenders

Banks and NBFCs don't report capital employed the way other businesses do

Debt/Equity

0.36x

Low

Conservative leverage

Revenue Growth (YoY)

52.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

196.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹1,660 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹63.25

P/E (Forward)

8.6x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

ROA

2.0%

Weak

Assets generate little profit

Operating Margin

34.1%

Good

Healthy core-business profitability

Net Margin

22.5%

Good

Strong bottom-line conversion

Beta (vs Nifty)

0.42

Defensive

Steadier than the market

52W Range Position

58%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

64.5 / 66.8

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

46.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3,288 Cr	₹4,057 Cr	₹4,370 Cr	₹4,907 Cr	+14.3%
PAT (Net Profit)	₹1,100 Cr	₹1,281 Cr	₹726 Cr	₹693 Cr	-14.3%
EPS	₹5.81	₹6.54	₹3.71	₹3.51	-15.5%
ROE	26.1%	22.8%	11.9%	10.2%	—
Total Debt	₹2,391 Cr	₹1,521 Cr	₹1,855 Cr	₹2,486 Cr	+1.3%
Free Cash Flow	₹934 Cr	₹1,347 Cr	₹1,861 Cr	₹1,660 Cr	+21.1%

🟢 Revenue has grown at 14.3% a year over 3 years.

🔴 PAT (Net Profit) has shrunk at 14.3% a year over 3 years.

🔴 EPS has shrunk at 15.5% a year over 3 years.

🔴 ROE has fallen from 26.1% to 10.2% over 3 years (-16.0 pts).

🟡 Total Debt has been broadly flat over 3 years (1.3% a year).

🟢 Free Cash Flow has grown at 21.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹57,541 Cr

Total Liabilities

₹50,726 Cr

Total Debt

₹2,486 Cr

Cash & Equivalents

₹3,431 Cr

Operating Cash Flow

₹1,843 Cr

Capex

-₹184 Cr

Shareholding (proxy)

Institutional Holding

41.3%

Insider Holding

0.0%

Corporate Actions

Ex-Dividend Date

12 Jul 2024

Analyst Consensus

Recommendations

19 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹82.53

+30.5% vs CMP

Target Range

₹60 – ₹90

Peer Comparison

Company	P/E	ROE
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
KOTAK MAHINDRA BANK LTD	21.9x	11.2%
AXIS BANK LIMITED	14.5x	13.4%

Recent News

1 positive1 mixed4 general

What Ujjivan Buyers Were Betting On

Simply Wall Street, 13 Oct

Ujjivan Small Finance Bank To Hold Analyst And Investor Meetings On September 24 And 25

Sahi, 21 SeptAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Ujjivan SFB Q2 Profit Jumps Nearly 3x to ₹365 Crore

HDFC Sky, 16 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Ujjivan SFB to raise Rs 409 crore from IFC, three insurers

The Economic Times, 16 Oct

Ujjivan Small Finance Bank approves preferential issue worth ₹409 crore to IFC, three other insurers

CNBC TV18, 16 Oct

Ujjivan Small Finance Bank Share Price: Buy or Sell

Univest, 04 Sept

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
Reported insider holding is low — cross-check the official promoter shareholding % in the company's exchange filing.

DalalBaazaar Thesis

🟢Business QualityStrong18/20

🟢Financial HealthStrong17/20

🔴GrowthWeak7.7/20

🟢ProfitabilityStrong10.2/15

🟢ValuationAttractive10.4/15

🟢RiskLow6.7/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

This thesis breaks if

✓Revenue growth stays above 11% a year14.3% CAGR
✓Return on equity stays above 15%16.6%
✓Valuation vs its own median of 9.3x10.9x today