Ujjivan Small Finance Bank Analysis

dividend

Pros

Cons

• No need to calculate the sustainability of Ujjivan Small Finance Bank's dividends in 3 years as they are not expected to pay a notable one for India.
• Unable to evaluate Ujjivan Small Finance Bank's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Ujjivan Small Finance Bank's dividend against the top 25% market benchmark as the company has not reported any payouts.

future

Pros

• Ujjivan Small Finance Bank's earnings are expected to grow significantly at over 20% yearly.
• Ujjivan Small Finance Bank's earnings growth is expected to exceed the India market average.
• Ujjivan Small Finance Bank's earnings growth is expected to exceed the low risk savings rate of 7.2%.
• Ujjivan Small Finance Bank's net income is expected to increase by more than 50% in 2 years time.
• Performance (ROE) is expected to be above the current IN Banks industry average.
• An improvement in Ujjivan Small Finance Bank's performance (ROE) is expected over the next 3 years.
• Ujjivan Small Finance Bank's revenue growth is expected to exceed the India market average.

Cons

• Ujjivan Small Finance Bank's earnings are expected to decrease over the next year.
• Ujjivan Small Finance Bank is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
• Ujjivan Small Finance Bank's revenue is expected to increase but not above the 50% threshold in 2 years time.
• Ujjivan Small Finance Bank's revenue is expected to grow by 14.1% yearly, however this is not considered high growth (20% yearly).

health

Pros

• Ujjivan Small Finance Bank's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
• Ujjivan Small Finance Bank's liabilities are made up of primarily low risk sources of funding.
• Ujjivan Small Finance Bank has an acceptable proportion of non-loan assets held.
• Ujjivan Small Finance Bank has an acceptable level of bad loans (less than 2%).

Cons

• Ujjivan Small Finance Bank has advanced significantly more loans than the customer deposits it holds (i.e. bank has borrowed additional funds to lend).

management

Pros

• The tenure for the Ujjivan Small Finance Bank management team is about average.

Cons

• The average tenure for the Ujjivan Small Finance Bank board of directors is less than 3 years, this suggests a new board.

misc

Pros

Cons

• Ujjivan Small Finance Bank has significant price volatility in the past 3 months.

past

Pros

• Ujjivan Small Finance Bank used its assets more efficiently than the IN Banks industry average last year based on Return on Assets.
• Ujjivan Small Finance Bank's earnings growth has exceeded the IN Banks industry average in the past year (102% vs 21%).

Cons

• Ujjivan Small Finance Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• Ujjivan Small Finance Bank is good value based on expected growth next year.

Cons

• Ujjivan Small Finance Bank's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Ujjivan Small Finance Bank's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Ujjivan Small Finance Bank is overvalued based on assets compared to the IN Banks industry average.
• Ujjivan Small Finance Bank is overvalued based on earnings compared to the IN Banks industry average.
• Ujjivan Small Finance Bank is overvalued based on earnings compared to the India market.
• BSE:542904 is up 2.6% underperforming the Banks industry which returned 7.6% over the past month.
• BSE:542904 is up 2.6% underperforming the market in India which returned 8% over the past month.