Moneycontrol
Mar 21, 2017 12:25 PM IST | Source: Moneycontrol.com

Buy Ujjivan Financial Services; target of Rs 520: Geojit Financial Services

Geojit Financial Services' is bullish on Ujjivan Financial Services has recommended buy rating on the stock with a target price of Rs 520 in its research report dated March 16, 2017.


Geojit Financial Services' research report on Ujjivan Financial Services


Loan book has grown at a strong CAGR of 65% over FY13-16. Ujjivan offers microfinance (86% of loan book) to self-help groups and individual loans for Agriculture & animal husbandry finance and housing finance. Branch expansion and aggressive client acquisition has been the strategy so far.


Outlook


Ujjivan is currently trading at one year forward Adj. P/B of 2.7x. We believe this premium valuation will sustain, given the possibility of high growth led by SFB. We value at 2.8x FY19E Adj. BV and recommend Buy with a target price of Rs 520.


For all recommendations, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Sections
Follow us on
Available On