Ujjivan Financial Services Reports Positive Q3 Results, Debt-Equity Ratio a Concern

Ujjivan Financial Services, a leading finance and non-banking financial company (NBFC) in the midcap industry, has recently announced its financial results for the quarter ending December 2023. The company's stock has been given a 'Hold' call by MarketsMOJO.

According to the financial report, Ujjivan Fin.Ser. has shown a positive performance in the quarter, with a score of 9 out of 10. This is a slight decrease from the previous quarter, but the company's overall financial health remains strong.

One of the key factors contributing to Ujjivan Fin.Ser.'s positive performance is its net sales, which have been consistently growing over the last five quarters. In the quarter ending December 2023, the company's net sales reached a record high of Rs 1,575.67 crore, showing a growth of 20.1% compared to the average net sales of the previous four quarters. This trend is expected to continue in the near future.

Another positive aspect of Ujjivan Fin.Ser.'s financials is its operating profit (PBDIT), which has also seen a significant increase in the last five quarters. In the quarter ending December 2023, the company's operating profit reached a high of Rs 976.02 crore, indicating a positive trend in the near term.

However, the company's debt-equity ratio has been a cause for concern. In the last five half-yearly periods, the ratio has reached a high of 9.56 times, indicating that the company is relying heavily on borrowing to fund its operations. This could potentially lead to a strained liquidity situation for the company.

Overall, Ujjivan Financial Services has shown a strong financial performance in the quarter ending December 2023, with positive trends in net sales and operating profit. However, investors should keep an eye on the company's debt-equity ratio and its impact on the company's liquidity.