
Shares of Ujjivan Small Finance Bank Ltd rose sharply in Friday's trade after the firm reported strong numbers for the September 2023 quarter of the financial year 2023-24 (Q2 FY24). The stock surged 8.04 per cent to hit a 52-week high of Rs 61.40 over its previous close of Rs 56.83. At this one-year high price, the multibagger scrip has gained around 129 per cent in six months and 102 per cent on a year-to-date (YTD) basis.
Ujjivan SFB said its total deposits grew 43 per cent to Rs 29,134 crore in Q2 FY24 from Rs 20,396 crore in the same period a year ago. Sequentially, the figure was up by 9 per cent. The small finance lender's total deposits came at Rs 26,660 crore in Q1 FY24. Robust growth continued in terms of disbursements and advances.
"Advances are up 27 per cent/5 per cent YoY/QoQ to Rs 26,600 crore from Rs 20,938 crore/Rs 25,326 crore in September 2022/June 2023.Disbursement remains robust with 18 per cent/9 per cent YoY/QoQ growth," Ujjivan SFB mentioned.
On technical setup, immediate support on the counter could be seen around Rs 56-54 levels. Two analysts said profit booking may be seen at current levels, while one of them suggested a further up move.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Ujjivan Small Finance Bank has been in a strong uptrend in the current financial year and has currently clocked new highs on the price charts. Narrowing down to the time zone, we have seen a decisive spurt on the back of robust volumes in the last couple of trading weeks. From a technical point of view, the counter is poised to continue its upward march into uncharted territory. At the same time, the immediate support could be seen around the Rs 55-54 zone, followed by sacrosanct support of Rs 50 in the comparable period."
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "There could be a possibility of profit booking near Rs 60-61 levels. On the indicator front, weekly DMI (directional movement index) looks overstretched, which might result in some pullback. As of now, no fresh longs are advised."
AR Ramachandran from Tips2trades said, "Ujjivan Small Finance Bank is overbought and slightly bullish on the daily charts with next resistance now at Rs 64. Investors should be booking profits at current levels as a daily close below support of Rs 56 could lead to Rs 49.5 in the near term."
The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 75.35. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 9.10 against a price-to-book (P/B) value of 2.67.
The scrip has an analyst target price of Rs 53, Trendlyne data showed, suggesting a potential downside of 12 per cent in a year. It has a one-year beta of 0.83, indicating low volatility on the counter.
(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)
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