Espresso shot of the day – Ujjivan Financial Services Ltd up by 9.81 percent

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Espresso shot of the day – Ujjivan Financial Services Ltd up by 9.81 percent

September 09, 2021
Espresso shot of the day – Ujjivan Financial Services Ltd up by 9.81 percent

UJJIVAN FINANCIAL SERVICES LTD 157.20 (+9.81%) BSE – INE334L01012 | 9TH SEPTEMBER 2021


Mr. Samit Ghosh, the founder of Ujjivan, identified the demand-supply gap in access to credit products among the urban poor in 2005, a segment that constituted a population at that time of about 10.6 crores. This led him to start Ujjivan in October 2005 with the initial objective of providing a full range of financial services to the economically active poor in urban areas who were not adequately served by financial institutions. Ujjivan adapted the Grameen model and customized to fit the Indian context for serving urban poor, who were the fastest growing unserved population. Since inception, Ujjivan’s business model has been centered on acquiring an in-depth understanding of customer needs to develop tailored products that are distributed through customized delivery channels. Its operations combined the high-touch point microfinance model with the technology prowess and back-end support functions of a retail bank, to establish wider penetration and best-in-class process efficiency. Ujjivan was the first MFI to start its operations with a fully integrated IT platform at the backend. On Oct 7, 2015, Ujjivan received an in-principle approval from the RBI to set up a Small Finance Bank and floated its wholly owned subsidiary Ujjivan Small Finance Bank Ltd. The company transferred its business to Ujjivan Small Finance Bank, which, subsequent to the RBI license, commenced its banking operations from Feb 1, 2017. Ujjivan Small Finance Bank Ltd. is also included in the Second Schedule to the Reserve Bank of India Act, 1934.

Recent Drivers

  • On Aug 24, 2021, Ujjivan Small Finance Bank (USFB) Limited entered into a partnership through which Ujjivan SFB and its channel partners will use Decimal’s digital lending platform – Saarathi. This collaboration will enable the bank to digitize loan sourcing through its salesforce as well as Direct Selling Agents (DSAs).
  • On Aug 23, 2021, the Stakeholders Relationship Committee of the Board approved the allotment of 5,704 equity shares of Rs 10 each towards the exercise of vested stock options under the ESOP scheme of the company.
  • On June 15, 2021, the Stakeholders Relationship Committee of the Board approved the allotment of 410 equity shares of Rs 10 each towards the exercise of vested stock options under the ESOP scheme of the company.
  • On June 1, 2021, Ujjivan Financial Services Ltd. reported quarterly net profit at Rs 70.06 crores in March 2021, up 9.4% from Rs 64.04 crores in March 2020.
(Sources: Moneycontrol, BSEIndia.com, Express Computer)


Technical Force*

  • S&P BSE 500 month till date gain up by 1.87%
  • Touched upper circuit Rs 157.45
  • Spurt in volume by more than 3.59 times compared to previous vol. | 3 months avg. volume: 1,26,035
  • Quantity traded: 4,86,646 | Deliverable quantity: 2,36,874 (48.67%)
  • Stock price has jumped more than 20% from one-year-low level: 126.1 (Sept 8, 2021)
  • Daily RSI (14) is nearby Oversold territory today
  • 52-week-high: 310.85 | 52-week-low: 126.1

Key Pivot  (Yearly)

R4

R3

R2

R1

PP /FIB PP

S1

S2

S3

S4

Pivot Point

-

 710.17

562.78

419.32

271.93

128.47

-

-

    -

Fibonacci Pivot

562.78

451.68

383.04

338.83

271.93

205.04

160.83

92.19

    -


Today’s Close

157.20

SMA

BSE

10 DAY

153.01

20 DAY

169.09

50 DAY

202.81

200 DAY

231.12


Some Key Ratios (Source: BSE)

Market Cap: 1,912.61 crores

PE: 786.88

OPM%: -

ROE%: 0.13

Promoters holding%: –

Prev. Close: 143.15

*Chart And Technical Force data taken from the Binge desktop app.

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Chandresh Khona
by Chandresh Khona

Product Offerings Head

A teacher, writer, travel buff and now Espresso's Product Offerings Head. Ten years here has allowed me to lead the digital team at Sharekhan. My true passion lies in stock market charts.