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HomeSTOCKS₹49 Share Ready To Touch ₹100? Good Opportunity For Long-term Investment

₹49 Share Ready To Touch ₹100? Good Opportunity For Long-term Investment

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Utkarsh Small Finance Bank Ltd (NSE: UTKARSHBNK): After the recent correction in the domestic market, some shares have a good value and offer a good investment opportunity. 

A brokerage firm, has chosen to purchase Utkarsh Small Finance Bank’s small-cap banking shares amid the current market turmoil. 

The brokerage firm believes that the bank, which began its journey in Varanasi (UP) as a microfinance institute in FY10 will greatly benefit from the structural development of Uttar Pradesh. 

The stock has corrected by about 8 percent so far this year.

Utkarsh SFB Price To Increase From Rs 70

Brokerage gave a buy recommendation on Utkarsh Small Finance Bank. The target price for each share was also kept at 70 rupees. 

The price of a share on March 21 was Rs 48. At the current price, the share could give a return of up to 45-46 percent. 

The stock was listed last July. The stock has corrected by 8 percent so far in 2024. The share reached a 52-week peak of 68.23 on February 8, this year.

Utkarsh SFB – What’s The Opinion Of The Brokerage?

Brokerage House claims that the small finance bank which began its journey in Varanasi as a microfinance firm in 2010 has a strong position in UP and Bihar. 

The bank has a wealth of demographic data about the states. In both states, their distribution network is strong. 

In all districts of Uttar Pradesh, the banking network is strong. Only 7 districts out of 75 have credit penetration below 20 percent.

The brokerage says that new products, better asset management compared to peers, and a rapid turnaround of liability franchises have been positives for the bank. 

The bank wrote off 12 percent of its assets during Covid, compared to other MFIs that had written-offs ranging from 12 to 20 percent. 

The cost of funding has dropped rapidly. These factors may cause RoE to be higher than 18 percent and growth to be greater than 25 percent in FY24-26E. 

In Uttar Pradesh, the credit market share has increased by 42bps. By December 2023 the market share will be around 40 percent.

About Utkarsh Small Finance Bank Ltd

Utkarsh Small Finance Bank Limited is a small finance bank based in India. The Bank provides banking and financial services.

The Bank offers asset products to customers in underbanked or unbanked areas and liability products as deposits from customers in different regions. 

The Bank’s segments are Corporate/ Wholesale Banking (including Retail Banking), Treasury and Other Banking Operations, and Retail Banking.

The Bank’s Corporate/ Wholesale segment provides corporate customers with lending, deposit, and other banking products.

Retail Banking includes the provision of lending, deposit, and other banking services to retail customers through the Bank’s branch network.

Treasury includes handling statutory liquidity requirements (SLR), non-SLR investment, reserve requirements, and resource mobilization by other financial institutions and banks.

Fundamental Analysis of Utkarsh Small Finance Bank Ltd 

Market Cap₹ 5,409 Cr.
Current Price₹ 49.30
52-wk High₹ 68.30
52-wk Low₹ 37.20
Stock P/E11.45
Book Value
Dividend0.00 %
ROCE9.37 %
ROE22.6 %
Face Value₹ 10.0
P/B Value
OPM50.3 %
EPS₹ 4.79
Debt₹ 16,060 Cr.
Debt to Equity8.03

Utkarsh Small Finance Bank Share Price Target 2024 To 2030

Year1st Target2nd Target
2024₹ 67₹ 97
2025₹ 105₹ 110
2026₹ 125₹ 143
2027₹ 165₹ 186
2028₹ 200₹ 222
2029₹ 235₹ 254
2030₹ 260₹ 275
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Utkarsh Small Finance Bank Shareholding Pattern

Promoters Holding
Sept 202369.28%
Dec 202369.16%
FII Holding
Sept 20232.07%
Dec 20230.74%
DII Holding
Sept 202312.99%
Dec 202311.30%
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Public Holding
Sept 202315.67%
Dec 202318.80%

Utkarsh Small Finance Bank Ltd Share: Last 5 Years’ Financial Condition

To gain a better understanding of how the market is performing, let’s look at the outlook of this share in the previous years. 

However, investors should be aware of the risks and the market conditions before making any investment decision.

Last 5 Years’ Sales:

2019₹ 881 Cr
2020₹ 1,308 Cr
2021₹ 1,581 Cr
2022₹ 1,849 Cr
2023₹ 2,974 Cr

Last 5 Years’ Net Profit:

2019₹ 94 Cr
2020₹ 187 Cr
2021₹ 112 Cr
2022₹ 61 Cr
2023₹ 472 Cr
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Last 10 Years’ Profit Growth:

10 Years:
5 Years:
3 Years:29%
Current Year:48%

Last 10 years’ Return on Equity (ROE):

10 Years:
5 Years:
3 Years:13%
Last Year:23%

Last 10 Years’ Sales Growth:

10 Years:
5 Years:
3 Years:24%
Current Year:27%

Conclusion

This article is a complete guide about Utkarsh Small Finance Bank Ltd Share.

These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses. 

Also, We have talked in detail about the share’s future prospects and growth potential.

Hopefully, these informations will help you in your further investment. 

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