Why is Ujjivan Small falling/rising?

Sep 08 2025 10:52 PM IST
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As of 08-Sep, Ujjivan Small Finance Bank Ltd's stock price is Rs 44.19, up 3.76%, but concerns about falling investor participation and negative quarterly results raise profitability risks despite strong lending practices. The stock's recent performance outpaces the broader market, yet its premium valuation and declining profits warrant caution for investors.
As of 08-Sep, Ujjivan Small Finance Bank Ltd's stock price is currently at Rs 44.19, reflecting an increase of Rs 1.6 or 3.76%. The stock has outperformed its sector today by 3.68%, reaching an intraday high of Rs 44.44, which is a 4.34% increase. Over the past week, the stock has shown a return of +1.94%, while it has delivered a year-to-date return of +30.86%. However, there are concerns regarding falling investor participation, as the delivery volume has decreased by 48.55% compared to the 5-day average. The bank's strong lending practices, indicated by a low Gross NPA ratio of 2.52% and a high Capital Adequacy Ratio of 24.50%, support its recent price movement, but the company has reported negative results for the last four consecutive quarters, which raises concerns about its profitability.

In the broader market context, Ujjivan Small Finance Bank's short-term performance of +1.94% over the past week significantly outpaces the Sensex's return of +0.53% during the same period. Despite the stock's positive movement, the negative results reported, including a substantial drop in profit before tax and net interest income, suggest underlying weaknesses that could impact future performance. The stock's premium valuation compared to peers, alongside a decline in profits over the past year, indicates that while the stock is currently rising, there are significant risks that investors should consider.
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