Stock Performance Overview
The stock has experienced a notable downtrend, falling by 1.87% on the latest trading day, underperforming the Sensex which declined by 0.26%. Over the past week, the stock has lost 6.50%, compared to the Sensex’s 1.70% drop. The one-month performance shows a sharper decline of 9.23% against the Sensex’s 3.49% fall. The three-month period reveals a steep 26.27% loss, significantly worse than the Sensex’s 2.91% decrease.
Year-to-date, the stock has declined by 7.45%, while the Sensex has fallen by 3.82%. The one-year performance is particularly stark, with Utkarsh Small Finance Bank Ltd posting a negative return of 54.69%, in contrast to the Sensex’s positive 8.08% gain. Over three and five years, the stock has shown no appreciable growth, remaining flat, whereas the Sensex has delivered returns of 35.21% and 65.17% respectively. The ten-year comparison further highlights the disparity, with the Sensex up 242.07% and the stock unchanged.
Additionally, the stock has been trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – indicating sustained bearish momentum. The stock has also recorded losses for two consecutive days, with a cumulative return of -7.26% during this period.
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Financial Results and Profitability Metrics
Utkarsh Small Finance Bank Ltd has reported negative results for five consecutive quarters, including the most recent quarter ending September 2024, which marked the fourth consecutive quarter of losses. The Profit Before Tax Less Other Income (PBT LESS OI) for the latest quarter stood at a loss of ₹562.32 crores, representing a decline of 102.6% compared to the average of the previous four quarters.
Net Profit After Tax (PAT) for the quarter was a loss of ₹348.46 crores, a significant deterioration of 294.7% relative to the prior four-quarter average. The Return on Capital Employed (ROCE) for the half-year period was recorded at a low 36.70%, underscoring the subdued capital efficiency.
The Return on Assets (ROA) is negative at -2.7%, reflecting the bank’s current inability to generate profits from its asset base. Despite this, the stock trades at a Price to Book Value of 1.1, indicating a valuation premium relative to its peers’ historical averages, which may be considered expensive given the ongoing losses.
Market Capitalisation and Mojo Ratings
The company holds a Market Cap Grade of 3, signalling a mid-tier market capitalisation status. The Mojo Score has deteriorated to 19.0, with the Mojo Grade downgraded from Sell to Strong Sell as of 14 October 2025. This reflects a marked decline in the company’s financial health and market sentiment.
Over the past year, the stock’s return of -54.69% has been accompanied by a 262.1% fall in profits, highlighting the severity of the financial downturn. The stock has underperformed the BSE500 index over the last three years, one year, and three months, indicating below-par performance both in the near and long term.
Capital Adequacy and Institutional Holdings
Utkarsh Small Finance Bank Ltd maintains a Capital Adequacy Ratio of 0%, which is an unusual figure and may indicate a reporting anomaly or a specific regulatory status. Typically, a higher Capital Adequacy Ratio is favourable as it signifies buffers against risk-weighted assets. The bank’s institutional shareholding stands at 21.57%, suggesting that a significant portion of the stock is held by investors with greater analytical resources and access to company fundamentals.
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Sector and Peer Comparison
Operating within the Other Bank sector, Utkarsh Small Finance Bank Ltd’s recent performance contrasts sharply with broader sector trends. The stock’s underperformance relative to the sector and benchmark indices highlights the challenges faced by the company in maintaining competitive positioning and financial stability.
The stock’s premium valuation relative to peers, despite ongoing losses and negative returns, suggests a divergence between market pricing and fundamental performance metrics. This gap may reflect market expectations or structural factors unique to the company’s profile.
Summary of Key Metrics
To summarise, the stock’s key performance indicators are as follows:
- Latest closing price within 0.87% of 52-week low at ₹13.68
- Negative returns of -54.69% over one year
- Five consecutive quarters of negative results
- Quarterly PBT LESS OI loss of ₹562.32 crores, down 102.6%
- Quarterly PAT loss of ₹348.46 crores, down 294.7%
- ROCE at 36.70% for half-year period
- Negative ROA of -2.7%
- Price to Book Value of 1.1, trading at a premium to peers
- Mojo Score of 19.0 with a Strong Sell rating
- Institutional holdings at 21.57%
The stock’s sustained decline and financial results underscore the severity of the current situation, with no immediate signs of reversal evident in the recent data.
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