Utkarsh Small Finance Bank Reports Strong Q1 Results, Stock Call 'Hold' by MarketsMOJO

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

The bank has shown positive financial performance in the quarter, with a score of 9 out of 11. This is a slight decrease from the previous quarter, but still reflects a strong performance. The net sales for the quarter were at a record high of Rs 965.92 crore, showing a consistent growth trend over the last five quarters. The profit after tax (PAT) for the first half of the year was Rs 297.06 crore, with a year-on-year growth of 23.11%. The operating profit (PBDIT) for the quarter was also at its highest in the last five quarters, at Rs 206.63 crore.

However, there are some areas that need improvement for Utkarsh Small F. The operating cash flow for the year was at its lowest in the last three years, indicating a decline in cash revenues from business operations. The interest cost for the quarter was also at its highest in the last five quarters, showing a 10.43% increase from the previous quarter. This could be a result of increased borrowings by the bank. Additionally, the non-operating income for the quarter was 56.19% of the profit before tax, which is a cause for concern as it indicates a high reliance on non-business activities.

Overall, Utkarsh Small Finance Bank has shown a positive financial performance in the quarter ended June 2024. However, there are some areas that need attention in order to sustain this growth in the long term. Investors are advised to hold their position in the stock and keep a close eye on the bank's future financial results.