Ujjivan listing - CapitalVia Global Research

Ujjivan Financial Services - Mr. Vivek Gupta, Director Research, CapitalVia Global Research Limited.

"The company reported total revenues of Rs6.1bn and Rs7.3bn in FY15 and 9MFY16respectively and delivered net profits of Rs758mn and Rs1.22bn in over the similar period. The company has maintained very strong asset quality with GNPL ratio of 0.15% and Net NPL ratio at 0.04% as at Dec-2015.The company has also started to offer individual loans to Micro & Small Enterprises and has delivered 51%/59% cagr in AUMs and net earnings over past four years. Being the third largest microfinance company in India Ujjvan has a great potential to grow. It has operation across 24 states through 470 branches. Microfinance companies has immense potential in India and it should get policy help going forward. We advise to investor to hold the stock, it should give good return."

Source : Equity Bulls

Keywords