Buy Ujjivan Small Finance Bank; target of Rs 75: ICICI Securities

ICICI Securities is bullish on Ujjivan Small Finance Bank has recommended buy rating on the stock with a target price of Rs 75 in its research report dated January 23, 2026.

Broker Research

January 23, 2026 / 15:00 IST

Buy

ICICI Securities's research report on Ujjivan Small Finance Bank

Ujjivan Small Finance Bank (USFB)’s Q3FY26 RoA improved to 1.5% (four straight quarters of RoA expansion), driven by a strong uptick in revenue, aided by NIM expansion and subsiding stress in MFI (gross slippages moderated to INR 2.2bn vs. INR 2.8bn QoQ). This was on account of ~80bps annualised decline in credit cost to 2%. PAT grew 52% QoQ and 71% YoY to INR 1.9bn with RoA and RoE at 1.5% and 11.5%, respectively. Management highlighted that USFB is on track to achieve its 1.2–1.4% RoA target for FY26, implying Q4FY26 RoA could be ~1.5%.

Outlook

Retain BUY; TP revised to INR 75 (vs. INR 60), valuing USFB at 1.9x Mar’27E BVPS (earlier: 1.6x Sep’26E) as Q3 earnings give greater visibility of RoA crossing 1.5% mark in the near term, coupled with steady AUM growth.

For all recommendations report, click here