Ujjivan Small Finance Bank (SFB) shares gained more than 5% in early trade after brokerage firm Antique Stock Broking maintained its Buy rating on the stock with a target price of ₹73. As of 9:40 AM, the shares were trading 4.69% higher at Rs 46.24.
In its analyst meet note, Antique highlighted that the bank is targeting more than 25% compound annual growth in its loan book between FY25 and FY30, aiming to scale up to ₹1 lakh crore by FY30. The share of secured lending is expected to increase from 46% to around 65–70% during the same period.
The brokerage noted that net interest margins are likely to remain in the 6–7% range, while credit costs are guided to normalize at 1.0–1.5% by FY30. Cost-to-assets is expected to decline from 6% to 5% over the next five years. On profitability, the bank has guided for a return on assets of 1.8–2% and a return on equity of 16–18% by FY30.
On the liabilities front, the CASA ratio is expected to improve from 24% to about 35% by FY30. The bank has also applied for a universal banking license and expects a response from the Reserve Bank of India by December 2025. In addition, it plans to raise ₹20 billion over the next 18 to 24 months, while its current capital adequacy ratio stands at 23%.
Antique has valued Ujjivan SFB at 1.7x its estimated book value for the first half of FY28, leading to the target price of ₹73.
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