BSE:539874

Stock Analysis Report

Ujjivan Financial Services

Executive Summary

Ujjivan Financial Services Limited, a microfinance institution, provides retail banking services and a range of financial services to economically active poor in urban and semi-urban areas in India.

Snowflake

Fundamentals

High growth potential with mediocre balance sheet.

Risks

  • Ujjivan Financial Services has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Ujjivan Financial Services's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-6.8%

BSE:539874

-3.6%

IN Consumer Finance

-2.1%

IN Market


1 Year Return

-25.9%

BSE:539874

-3.2%

IN Consumer Finance

-14.7%

IN Market

539874 underperformed the Consumer Finance industry which returned -3.1% over the past year.

539874 underperformed the Market in India which returned -14.6% over the past year.


Share holder returns

539874IndustryMarket
7 Day-6.8%-3.6%-2.1%
30 Day-2.2%1.9%-3.9%
90 Day-23.8%-10.2%-10.1%
1 Year-25.6%-25.9%-2.5%-3.2%-12.9%-14.7%
3 Year-38.7%-39.1%59.3%56.0%17.7%11.5%
5 Yearn/a233.9%218.2%35.4%22.5%

Price Volatility Vs. Market

How volatile is Ujjivan Financial Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

1 year ago | Simply Wall St

May Growth Stock Picks

1 year ago | Simply Wall St

May Growth Stock Picks

1 year ago | Simply Wall St

May Growth Stock Picks

Valuation

Is Ujjivan Financial Services undervalued based on future cash flows and its price relative to the stock market?

17.12x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Ujjivan Financial Services's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Ujjivan Financial Services's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Ujjivan Financial Services is overvalued based on earnings compared to the IN Consumer Finance industry average.

Ujjivan Financial Services is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

Ujjivan Financial Services is good value based on expected growth next year.


Price Based on Value of Assets

Ujjivan Financial Services is overvalued based on assets compared to the IN Consumer Finance industry average.


Next Steps

Future Growth

How is Ujjivan Financial Services expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

29.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Ujjivan Financial Services's revenue is expected to grow significantly at over 20% yearly.

Ujjivan Financial Services's earnings are expected to grow significantly at over 20% yearly.

Ujjivan Financial Services's revenue growth is expected to exceed the India market average.

Ujjivan Financial Services's earnings growth is expected to exceed the India market average.

Ujjivan Financial Services's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Ujjivan Financial Services is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Ujjivan Financial Services performed over the past 5 years?

-5.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Ujjivan Financial Services's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Ujjivan Financial Services's 1-year earnings growth exceeds its 5-year average (47.2% vs -5%)

Ujjivan Financial Services's earnings growth has exceeded the IN Consumer Finance industry average in the past year (47.2% vs 15%).


Return on Equity

Ujjivan Financial Services has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Ujjivan Financial Services used its assets less efficiently than the IN Consumer Finance industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Ujjivan Financial Services improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Ujjivan Financial Services's financial position?


Financial Position Analysis

Ujjivan Financial Services is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Ujjivan Financial Services's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Ujjivan Financial Services's level of debt (223.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (435.3% vs 223.5% today).

Debt is not well covered by operating cash flow (5.5%, less than 20% of total debt).

Unable to confirm if the interest payments on Ujjivan Financial Services's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2.9x debt.


Next Steps

Dividend

What is Ujjivan Financial Services's current dividend yield, its reliability and sustainability?

0.44%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Ujjivan Financial Services's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.65%).

Ujjivan Financial Services's dividend is below the markets top 25% of dividend payers in India (2.64%).

Ujjivan Financial Services has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Ujjivan Financial Services only paid a dividend in the past 3 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (11.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (35.7x coverage).


Next Steps

Management

What is the CEO of Ujjivan Financial Services's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Ittira Davis (64yo)

1.1yrs

Tenure

₹8,519,806

Compensation

Mr. Ittira Davis serves as Managing Director, Chief Executive Officer and Director of Ujjivan Financial Services Ltd. since July 01, 2018. Mr. Davis was Head of Transition at Ujjivan Financial Services Lim ...


CEO Compensation Analysis

Ittira's remuneration is lower than average for companies of similar size in India.

Ittira's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.3yrs

Average Tenure

43yo

Average Age

The tenure for the Ujjivan Financial Services management team is about average.


Board Age and Tenure

2.9yrs

Average Tenure

64yo

Average Age

The average tenure for the Ujjivan Financial Services board of directors is less than 3 years, this suggests a new board.


Insider Trading

Ujjivan Financial Services individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell₹2,862,54209 Aug 19
Carol Furtado
EntityIndividual
Role
Head of Human Resources
Head of Human Resources & Service Quality
Shares10,000
Max Price₹286.25
Sell₹1,420,18910 Jun 19
John Christy
EntityIndividual
Shares4,000
Max Price₹355.05
Sell₹2,686,32611 Mar 19
G. Premkumar
EntityIndividual
Role
Chief Administrative Officer
Head of Vigilance and Administration
Shares8,567
Max Price₹313.57
Sell₹2,015,59431 Oct 18
G. Premkumar
EntityIndividual
Role
Chief Administrative Officer
Head of Vigilance and Administration
Shares10,200
Max Price₹197.61
Sell₹1,198,94011 Oct 18
G. Premkumar
EntityIndividual
Role
Chief Administrative Officer
Head of Vigilance and Administration
Shares5,175
Max Price₹231.68
Buy₹1,169,30511 Oct 18
G. Premkumar
EntityIndividual
Role
Chief Administrative Officer
Head of Vigilance and Administration
Shares5,175
Max Price₹225.95

Ownership Breakdown


Management Team

  • Vijay Balakrishnan

    Chief Marketing Officer

    • Tenure: 0.0yrs
  • Carol Furtado (48yo)

    Head of Human Resources & Service Quality

    • Tenure: 3.2yrs
    • Compensation: ₹4.25m
  • G. Premkumar

    Head of Vigilance and Administration

    • Tenure: 0.0yrs
    • Compensation: ₹2.16m
  • Ittira Davis (64yo)

    MD, CEO & Director

    • Tenure: 1.1yrs
    • Compensation: ₹8.52m
  • A. Alagarsamy

    Head of Audit

    • Tenure: 0.0yrs
    • Compensation: ₹3.15m
  • Deepak Khetan (35yo)

    Executive Officer

    • Tenure: 0.0yrs
    • Compensation: ₹4.57m
  • Jolly Zachariah (58yo)

    Head of Channels

    • Tenure: 0.0yrs
    • Compensation: ₹3.28m
  • Sanjeev Barnwal (38yo)

    Compliance Officer & Company Secretary

    • Tenure: 2.3yrs
    • Compensation: ₹4.32m
  • Sushant Vanmali (25yo)

    Assistant Manager of Investor Relations

    • Tenure: 0.0yrs
  • Barun Agarwal

    Chief Financial Officer

    • Tenure: 0.0yrs

Board Members

  • Jaithirth Rao (67yo)

    Member of the Advisory Group

    • Tenure: 0.0yrs
  • Vijay Mahajan (64yo)

    Member of the Advisory Group

    • Tenure: 0.0yrs
  • Vishnu Dusad (62yo)

    Member of The Advisory Group

    • Tenure: 0.0yrs
  • Abhijit Sen (69yo)

    Non-Executive Independent Director

    • Tenure: 2.9yrs
    • Compensation: ₹937.40k
  • Ram Ramamoorthy (79yo)

    Non-Executive Chairman

    • Tenure: 0.0yrs
    • Compensation: ₹948.30k
  • Ravi Bahl

    Member of the Advisory Group

    • Tenure: 0.0yrs
  • Jayanta Basu (54yo)

    Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: ₹490.50k
  • Ittira Davis (64yo)

    MD, CEO & Director

    • Tenure: 1.1yrs
    • Compensation: ₹8.52m
  • Narayan Anand (56yo)

    Non-Executive Non-Independent Director

    • Tenure: 0.3yrs
  • Vandana Viswanathan (48yo)

    Non-Executive Independent Director

    • Tenure: 7.5yrs
    • Compensation: ₹414.20k

Company Information

Ujjivan Financial Services Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ujjivan Financial Services Limited
  • Ticker: 539874
  • Exchange: BSE
  • Founded: 2004
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: ₹32.137b
  • Shares outstanding: 121.41m
  • Website: https://www.ujjivan.com

Number of Employees


Location

  • Ujjivan Financial Services Limited
  • Grape Garden, No. 27
  • 3rd A Cross, 18th Main
  • Bengaluru
  • Karnataka
  • 560095
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
539874BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2016
UJJIVANNSEI (National Stock Exchange of India)YesEquity SharesININRMay 2016

Biography

Ujjivan Financial Services Limited, a microfinance institution, provides retail banking services and a range of financial services to economically active poor in urban and semi-urban areas in India. It off ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 13:06
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.