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Ujjivan may see a strong growth of 45-50% in FY17: Antique Stock

Digant Haria of Antique Stock Broking says company will see a strong growth of 45-50 percent in FY17, but growth will taper off in FY18-19, he said.

May 26, 2016 / 12:23 IST
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Speaking to CNBC-TV18, Digant Haria of Antique Stock Broking, said the FY16 performance of Ujjivan Financial Services was based on its life as a microfinance company so far. Next year it will be a small bank and hence numbers may not be as strong as they were as it will investing Rs 300 crore in technology to convert itself into a bank.Ujjivan rose 14 percent to Rs 304 on the BSE after the company logged a net profit of Rs 177 crore in FY16, on the back of strong operational income. 

Going forward, the company will see a strong growth of 45-50 percent in FY17, but growth will taper off in FY18-19, he said.

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"These numbers as seen by Ujjivan may continue for the next three-four quarters; we will see a lowerbase," he said, adding that company's valuation is coming into a reasonable territory.

He sees Rs 350 as a near-term upside for the stock.