Ujjivan Financial Services: Strong Fundamentals and Bullish Technicals Make it a Potential Investment Option

Ujjivan Financial Services, a midcap finance company, has recently been downgraded to a 'Hold' by MarketsMOJO on 2024-01-23. This decision was based on the company's strong long-term fundamental strength, with a 37.44% CAGR growth in operating profits. The company has also declared positive results for the last 7 consecutive quarters, with its net sales and PBDIT reaching their highest levels at Rs 1,496.22 crore and Rs 965.96 crore respectively.
Technically, the stock is currently in a mildly bullish range, with multiple factors such as MACD, Bollinger Band, KST, and OBV pointing towards a bullish trend. Additionally, with a ROE of 22.9 and an attractive valuation of 2 Price to Book Value, the stock is currently trading at a discount compared to its average historical valuations.

Over the past year, Ujjivan Financial Services has generated a return of 109.75%, outperforming the market (BSE 500) returns of 23.79%. This impressive performance can be attributed to the company's high institutional holdings at 42.5%. These investors have better capability and resources to analyze the fundamentals of companies, making their confidence in Ujjivan Financial Services a positive sign for potential investors.

In conclusion, while the stock may have been downgraded to a 'Hold', Ujjivan Financial Services has shown strong long-term growth potential and has outperformed the market in the past year. With its attractive valuation and high institutional holdings, the stock may still be a good investment option for those looking for stable returns in the finance/NBFC industry.