RELEASED TODAY BY CRISIL
Found this somewhere floating on net:
Views of technical analysts will be appreciated.
I had highlighted this pattern formation earlier. But this pattern is just too clear for any amateur to discern and act, and when something is agreed and acted upon by everybody, it usually doesn’t happen. There might be impending positive triggers though, like CRISIL’s report on MFI recovery, Bandhan’s IPO valuation
Good article about small finance banks and their challenges
Anyone here who have access to equirus capital’s reports…please share whats there view on Ujjivan. They have initiated the research on this, few months back.
Today some 600000 Shares changed hands around 11’o Clock in just few minutes…Can someone please check and tell whether it was Pumped(Buying) or Dumped(Sell)?
This is a good summary view - can I ask what is the source?
Ujjivan is one among top 20 favorite stock of FII.
Ujjivan launches URCs in Eastern states
Well, this is a factor of how MFI industry has grown. If you take any MFI - NBFC including the ones that didn’t get SFB licenses, the foreign holding is very high. It doesn’t tell us anything about attractiveness of Ujjivan today.
Sharing the Annual Report notes I have collected, which mostly contain subjective intangible data to gauge the management, culture and values. The contents of the dual bottom line annual report suggests that this is a social improvement enterprise which is trying to balance the interests of its customers, employees and shareholders equally.
The note series is done till FY14 will post the last 3 in the next few days. Will also post an excel sheet with all the financial data. Also working on an SFB & MF Industry Comparative Data Sheet to develop an industry situational report, halfway through it, will post it on a separate thread.
Ujjivan is on 13th position in list of Best company to Work in India 2018
FY19 plans of Ujjivan -http://www.deccanherald.com/content/667885/ujjivan-serving-underserved.html
Few Answers I received from management -
What is your sensitivity to increase in interest rates? – We are not quite sensitive to increase in bond yields as our cost of funds has been declining. As a NBFC-MFI, we have raised money from banks at a rate of 12-13%. Now, as we converted to bank, we are repaying those loans and replacing them with low cost deposits. Also, we don’t have any mark to market losses in our book as all our investments are in T-bills which is valued at carrying cost and not at fair/market value.
How is the scene in Maharashtra where rural people are asking for loan waiver affects Ujjivan? – After demon, we have slowed down business in Maharashtra as that was one of our critically hit area. Given that, we don’t have much exposure in rural areas in Maharashtra. We are predominantly present in urban and semi-urban space in Mumbai and Pune. We don’t have presence in Nagpur and Marathawada regions since inception. Ujjivan has a specific policy that we won’t open any branches in areas which are sensitive to natural calamities. We knew that Vidarbha and Marathawada regions are prone to draught. So, we never entered those areas. Regarding today scene, we haven’t seen impact on ground from loan waiver as we don’t have direct exposure to agri (farm loans). There could be collateral damage but nothing of that sort has happened in past few days, plus our team are now quite well equipped to handle such situations.
Some analysts are quoting that Ujjivan is quite slow than its competitors in rolling over the CASA accounts. What’s your comment on this? – See, due to demonetization, our credit costs went high. So, as a measure of cost control we decided to not open as many bank branches as we have initially thought. On top of that, our field staff were asked to give a dedicated focus on collection because that was the first thing to sort out before we start disbursing new loans. Now, that demonetization impact is over and all our field staff are now focussing on building liability franchise. Other competitors had opened more than 300 branches, we have only 121 as of December. So, our CASA is not comparable with them. We will be converting all our branches by September 2018. Post that, you can see good traction in CASA accounts.
Is Ujjivan not keeping meetings with investors just as it’s competitors are doing? Our investor office is based in Mumbai. I don’t know any of our peers have their office here. We meet investors/analysts on a regular basis. We have recently attended IIFL and Kotak Conferences and met over 100 people there. Plus lot of people keep travelling to Bangalore for full day meeting with management. Some of them also get regular follow-ups by meeting us in Mumbai itself.
The costs of lending to MFIs had increased during Q4 2017 and Q1 2018 due to demonetization and the expected increase in the risks associated with this business. The article seems to miss this point.