Stock Analysis

₹406 - That's What Analysts Think Ujjivan Financial Services Limited (NSE:UJJIVAN) Is Worth After These Results

Source: Shutterstock

As you might know, Ujjivan Financial Services Limited (NSE:UJJIVAN) recently reported its annual numbers. It was a credible result overall, with revenues of ₹33b and statutory earnings per share of ₹73.20 both in line with analyst estimates, showing that Ujjivan Financial Services is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Ujjivan Financial Services after the latest results.

Check out our latest analysis for Ujjivan Financial Services

NSEI:UJJIVAN Earnings and Revenue Growth May 21st 2023

After the latest results, the two analysts covering Ujjivan Financial Services are now predicting revenues of ₹41.8b in 2024. If met, this would reflect a sizeable 27% improvement in sales compared to the last 12 months. Statutory earnings per share are forecast to nosedive 92% to ₹5.80 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ₹37.6b and earnings per share (EPS) of ₹73.90 in 2024. Although revenues are expected to increase meaningfully, the analysts have acknowledged the cost of growth, given the pretty serious reduction to EPS estimates following the latest report.

The analysts also upgraded Ujjivan Financial Services' price target 6.0% to ₹406, implying that the higher sales are expected to generate enough value to offset the forecast decline in earnings.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Ujjivan Financial Services' rate of growth is expected to accelerate meaningfully, with the forecast 27% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 13% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 20% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Ujjivan Financial Services is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Before you take the next step you should know about the 2 warning signs for Ujjivan Financial Services that we have uncovered.

Valuation is complex, but we're helping make it simple.

Find out whether Ujjivan Financial Services is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at)

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.