Ujjivan Small Finance Bank: A rising star in the NBFC arena

27 September 2023
3 mins read
by Angel One
Ujjivan Small Finance Bank Ltd, a leading NBFC player, defies market fluctuations with a 9% stock surge and robust volumes. It offers a diverse portfolio of banking services, showcasing resilience and growth potential.
Ujjivan Small Finance Bank: A rising star in the NBFC arena

In the midst of the ever-shifting tides of market trends, Ujjivan Small Finance Bank Ltd, a prominent player in the Non-Banking Financial Company (NBFC) sector, has emerged as a standout performer. The company’s stock recently experienced an impressive surge of nearly 9% in the current trading session, accompanied by robust trading volumes, highlighting its resilience and growth potential.

Ujjivan Small Finance Bank Ltd. specialises in providing a wide range of banking services. Its product portfolio encompasses asset products such as micro banking, micro and small enterprise loans, housing loans, personal loans, vehicle loans, and loan pricing, as well as liability products including current accounts, savings accounts, and term deposits. The bank also offers various other products and services, including ATM-cum-debit cards, Aadhar enrollment services, and the sale of third-party insurance products. Operating across distinct segments, namely Treasury, Retail Banking, and Corporate and Wholesale Banking, the company was founded by Samit Kumar Ghosh on July 4, 2016, with its headquarters located in Bengaluru, India.

Ujjivan Small Finance Bank Limited is a bank with a mass market focus in India, dedicated to serving financially underserved and unserved segments while actively contributing to financial inclusion in the country. It commenced its journey as Ujjivan Financial Services Limited, a Non-Banking Financial Company in 2005, with the mission to provide financial services to the economically active poor who were inadequately served by traditional financial institutions.

Delving into the technical intricacies, a thorough analysis of Ujjivan Small Finance Bank Ltd stock reveals a compelling narrative. The stock recently emerged from a consolidation phase spanning nearly 40 days, characterized by a trading range between Rs 52.25 and Rs 47.50. Notably, a significant trendline has come to light, connecting the peak on August 01, 2023, at Rs 52.25 with the point on September 11, 2023, at Rs 51.35. This trendline effectively establishes the breakout level of the continuation price pattern at Rs 51.

In a recent trading session, Ujjivan Small Finance Bank Ltd. achieved a pivotal breakthrough, not only surpassing the delineated trendline but also closing above it at Rs 54.50 in the last trading session. This confirmation of the pattern breakout was accompanied by a robust trading volume of 116.178 million shares, marking a historic moment in the stock’s journey. The resulting surge of 8.89% underscores the stock’s inherent strength and untapped potential.

Looking ahead, projections indicate a minimum target of approximately Rs 61. Should this projection materialize, it would signify a remarkable increase of over 20% from the breakout threshold, presenting an enticing opportunity for investors.

In light of these developments, the forthcoming trading sessions hold significant promise for savvy investors contemplating an investment in Ujjivan Small Finance Bank Ltd’s stock. The company’s commendable performance within the NBFC sector positions it as a noteworthy player to watch as market dynamics continue to evolve.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions