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 Analysis

Solid track record with high growth potential.


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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

Stable Share Price: 539874 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.6%

539874

-2.8%

IN Consumer Finance

-3.9%

IN Market


1 Year Return

30.9%

539874

49.0%

IN Consumer Finance

4.5%

IN Market

Return vs Industry: 539874 underperformed the Indian Consumer Finance industry which returned 51.3% over the past year.

Return vs Market: 539874 exceeded the Indian Market which returned 5.2% over the past year.


Shareholder returns

539874IndustryMarket
7 Day-5.6%-2.8%-3.9%
30 Day-2.4%9.1%-3.9%
90 Day7.4%13.8%-2.1%
1 Year31.4%30.9%50.0%49.0%6.4%4.5%
3 Year-17.1%-17.8%144.0%138.7%19.4%12.8%
5 Yearn/a257.0%241.4%28.2%16.6%

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 compared to its fair value and its price relative to the market?

11.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 539874 (₹363.9) is trading above our estimate of fair value (₹225.8)

Significantly Below Fair Value: 539874 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 539874 is good value based on its PE Ratio (11.6x) compared to the Consumer Finance industry average (14.6x).

PE vs Market: 539874 is good value based on its PE Ratio (11.6x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: 539874 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 539874 is overvalued based on its PB Ratio (2.2x) compared to the IN Consumer Finance industry average (0.7x).


Next Steps

Future Growth

How is Ujjivan Financial Services forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

30.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 539874's forecast earnings growth (30.2% per year) is above the savings rate (6.5%).

Earnings vs Market: 539874's earnings (30.2% per year) are forecast to grow faster than the Indian market (20.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 539874's revenue (22.9% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: 539874's revenue (22.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 539874's Return on Equity is forecast to be low in 3 years time (17%).


Next Steps

Past Performance

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

7.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 539874 has high quality earnings.

Growing Profit Margin: 539874's current net profit margins (15.3%) are higher than last year (14.7%).


Past Earnings Growth Analysis

Earnings Trend: 539874's earnings have grown by 7.3% per year over the past 5 years.

Accelerating Growth: 539874's earnings growth over the past year (31.1%) exceeds its 5-year average (7.3% per year).

Earnings vs Industry: 539874 earnings growth over the past year (31.1%) exceeded the Consumer Finance industry 14.2%.


Return on Equity

High ROE: 539874's Return on Equity (12.9%) is considered low.


Next Steps

Financial Health

How is Ujjivan Financial Services's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 539874 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 539874's debt is covered by short term assets (assets are 3.9x debt).


Financial Institutions Analysis

Asset Level: 539874's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 539874 has a sufficient allowance for bad loans.

Low Risk Liabilities: 539874 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 539874 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 539874 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 539874 has an appropriate level of bad loans.


Next Steps

Dividend

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

0.25%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 539874's dividend (0.25%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.61%).

High Dividend: 539874's dividend (0.25%) is low compared to the top 25% of dividend payers in the Indian market (2.67%).


Stability and Growth of Payments

Stable Dividend: 539874 is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: 539874 is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 539874 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 539874's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Ittira Davis (64yo)

1.6yrs

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

Compensation vs Market: Ittira's total compensation ($USD119.03K) is below average for companies of similar size in the Indian market ($USD396.01K).

Compensation vs Earnings: Ittira's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ittira Davis
MD, CEO & Director1.6yrs₹8.52m0.041% 18.5m
Sanjeev Barnwal
Compliance Officer & Company Secretary2.8yrs₹4.32m0.0010% 449.4k
Barun Agarwal
Chief Financial Officer0.5yrsno datano data
G. Premkumar
Head of Vigilance and Administration0yrs₹2.16mno data
Aditya Das
Assistant Manager of Investor Relations1.8yrsno datano data
Vijay Balakrishnan
Chief Marketing Officer0yrsno datano data
Carol Furtado
Head of Human Resources & Service Quality3.7yrs₹4.25m0.071% 31.9m
A. Alagarsamy
Head of Audit0yrs₹3.15mno data
Jolly Zachariah
Head of Channels0yrs₹3.28mno data
Pampilly Martin
Head of Operations & Service Quality0yrs₹2.31mno data

1.8yrs

Average Tenure

48yo

Average Age

Experienced Management: 539874's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ittira Davis
MD, CEO & Director1.6yrs₹8.52m0.041% 18.5m
Jaithirth Rao
Member of the Advisory Group0yrsno datano data
Vijay Mahajan
Member of the Advisory Group0yrsno datano data
Vishnu Dusad
Member of The Advisory Group0yrsno datano data
Abhijit Sen
Non-Executive Independent Director3.4yrs₹937.40kno data
Kuttalam Ramamoorthy
Non-Executive Chairman0yrs₹948.30k0.00082% 368.5k
Ravindra Bahl
Member of the Advisory Group0yrsno datano data
Jayanta Basu
Non-Executive Director4.9yrs₹490.50kno data
Narayan Anand
Non-Executive Non-Independent Director0.8yrsno datano data

2.5yrs

Average Tenure

63.5yo

Average Age

Experienced Board: 539874's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 539874 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: ₹44.939b
  • Shares outstanding: 121.59m
  • 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
639874BSE (Mumbai Stock Exchange)INR10 (FOREIGN PREMIUM)ININRApr 2017

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 offers home loans and home improvement loans; secured and unsecured loans to micro and small enterprises; microfinance services; and educational loans, as well as distributes life insurance and general insurance products. Ujjivan Financial Services Limited operates through 441 branches. The company was formerly known as Ujjivan Financial Services Private Limited and changed its name to Ujjivan Financial Services Limited in November 2015. Ujjivan Financial Services Limited was founded in 2004 and is headquartered in Bengaluru, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 13:00
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
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.