Marquee investor Dolly Khanna has signalled a potential exit from an underperforming stock in her portfolio, after holding it for just one quarter. The stock is Ujjivan Small Finance Bank, where Khanna picked up stake in the June 2024 quarter and her name was missing from the key shareholder's list for this quarter.
According to shareholding pattern, Khanna picked up 2,07,68,093 equity shares, or 1.08 per cent stake in Ujjivan Small Finance Bank in May 2024, which was cut to 2,06,22,093 equity shares, or 1.07 per cent, by the end of June 2024. However, Business Today can not ascertain if Khanna has completely exited the counter or not.
All the listed entities need to necessarily file the shareholding pattern of the company at the end of every quarter. The list needs to exclusively name the specific shareholders, who own a significant stake in the company, which is at least one per cent stake in the given company. If shareholding slips below one per cent, then it needs no name of the shareholders.
According to the data from Trendlyne, Chennai-based ace investor Dolly Khanna publicly holds 19 stocks with a net worth of over Rs 509 crore as per the latest corporate shareholdings filed so far.
To recall, Ujjivan Small Finance Bank made its Dalal Street debut in December 2019, when the company raised a total of Rs 750 crore via its IPO by selling its shares for Rs 37 apiece. The stock settled at Rs 41.40 on Wednesday, commanding a total market capitalization slightly below 8,000 crore.
The stock scaled its all time high at Rs 63 apiece in December 2023. The stock has corrected nearly 35 per cent from these levels. The stock is down 30 per cent in the last one year, while it has dropped 25 per cent in the last six months. However, the stock is up 12 per cent from its IPO price.
"Slower growth coupled with elevated LLP could weigh on earnings while stress in MFI should manifest into higher slippages in Ujjivan Small Finance Bank," said Emkay Global Finance Services which has a 'buy' rating on the stock with a target price of Rs 55. "Ujjivan SFB continued to demonstrate healthy credit growth, while saw moderate deposit growth rates during the period."
YES Securities expects overall loan growth to further moderate as Group MFI disbursements decline further in the September 2024 quarter. "NIMs may come under pressure from portfolio mix changes and sustained adverse trends in asset quality," said YES Securities, while estimating a significant uptick in credit cost on increase in PAR and higher slippages.
Axis Securities expects credit growth momentum moderates led by a slowdown in MFI, the share of secured products improving. NIMs are expected to taper QoQ, NII growth likely to be muted, while elevated Opex ratios and credit costs to account for MFI stress to result in earnings moderation. Slippages are likely to be higher QoQ, but asset quality to inch-up, it said.
Among other brokerages, Antique Stock Broking and JM Finance have a 'buy' rating on Ujjivan Small Finance Bank with target prices of Rs 60 and 65, respectively. Kotak Institutional Equities has an 'add' rating on the lender citing its fair value at Rs 55.