Ujjivan Small Finance Bank's Q4 2024 Results Show Mixed Performance, Investors Advised to Hold

Ujjivan Small Finance Bank, a midcap private bank, recently announced its financial results for the quarter ending March 2024. According to MarketsMOJO, a leading financial analysis platform, the stock call for Ujjivan Small is 'Hold'.

The bank's financial performance for the quarter has been flat, with a score of 4 out of 10, compared to 8 in the previous quarter. However, there are some positive aspects to the bank's performance based on the March 2024 financials.

Ujjivan Small's net interest income for the quarter was the highest at Rs 933.54 crore and has been growing consistently for the past five quarters. This indicates that the bank's core business is performing well. The interest earned for the quarter was also the highest at Rs 1,528.51 crore and has been growing each quarter, showing a positive sales trend.

The bank's profit after tax (PAT) for the quarter was the highest at Rs 329.63 crore, indicating a positive trend in profitability. The earnings per share (EPS) for the quarter was also the highest at Rs 1.71, showing an increase in profitability and creating higher earnings for shareholders.

However, there are some areas of concern for Ujjivan Small based on the March 2024 financials. The profit before tax less other income (PBT) for the quarter has fallen by -13.9% compared to the average PBT of the previous four quarters. This indicates a negative trend in the near term. The net non-performing assets (NPA) for the quarter was the highest at 0.28%, showing an increase in the proportion of stressed loans given by the bank.

The PBT for the quarter was also the lowest at Rs 203.43 crore, indicating a negative trend in the near term. The non-operating income for the quarter was 53.72% of the PBT, which is a cause for concern as it shows a high income from non-business activities. The non-operating income for the quarter was also the highest at Rs 236.13 crore, which may not be sustainable in the long run.

In conclusion, Ujjivan Small Finance Bank's financial performance for the quarter ending March 2024 has been mixed. While there are some positive aspects, there are also areas of concern that need to be addressed. Investors are advised to hold their position and monitor the bank's performance closely.