HSBC has reiterated its buy rating on Ujjivan Small Finance Bank with a target price of ₹61 per share, implying a potential upside of about 33.3% from the current market price of ₹45.77. The brokerage noted that the bank is aiming to build scale and diversify over the next five years, targeting a return on assets of 1.7–1.8% and a return on equity of over 15%.
HSBC, however, flagged that execution remains a key factor for delivering on these targets. The brokerage also cut earnings estimates, factoring in more conservative loan growth and credit cost assumptions.
Despite the cautious revisions, HSBC maintained that Ujjivan’s medium-term potential remains intact, supported by its growth strategy and profitability targets.
Disclaimer: The views and investment recommendations expressed are those of HSBC. These do not represent the views of this publication and should not be considered as investment advice. Investors are advised to consult their financial advisors before making any investment decisions.
