Home / Business and Economy / ICICI Securities Boosts Ujjivan SFB Target Price to ₹95
ICICI Securities Boosts Ujjivan SFB Target Price to ₹95
21 Oct
Summary
- Ujjivan SFB's stock has risen 22.75% over the past year.
- ICICI Securities maintains a 'Buy' rating with a new target of ₹95.
- The bank reported strong FY27 performance exceeding initial guidance.
Ujjivan Small Finance Bank (USFB) experienced a minor share price decrease on Wednesday, October 21. This follows a substantial 22.75% increase over the preceding year. The bank has demonstrated a stronger-than-anticipated financial performance for the first half of the 2026-27 fiscal year.
Analysts at ICICI Securities maintain a positive outlook, keeping a 'Buy' recommendation and raising the target price for USFB shares to ₹95. This revised target reflects nearly 51% potential upside, based on the bank's stable asset quality and growth prospects. The brokerage cites a robust earnings momentum in both Q1 and Q2 of FY27, with a Return on Assets (RoA) of 2.4% and Return on Equity (RoE) of approximately 20%.
Management now forecasts full-year FY27 RoA to surpass the initial 2% guidance. ICICI Securities notes that a 25 basis points repo rate hike could introduce a 10 basis points headwind to Net Interest Margin compression in the latter half of FY27. The bank recently raised INR 4.1 billion through preferential issuance to IFC and other investors.
