@hack2abi What’s your take on holding this stock considering there is no expected NIM expansion or operating leverage to play out in the near term. Credit cost base is still unfavourable for the next few quarters.
I personally see more anti-thesis than thesis in the bank post the reverse merger.
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FY24 end BVPS 29.1, CMP ~54, PB - 1.85x
Valuations are undemanding, personally not worried about NIMS, OpLev. These will keep changing depending on the cycle. Credit costs were best in the industry this FY and there is no reason to not expect the same.
If we think about expectations investing, unless you think the market doesn’t know what you have mentioned, this is not a reason to sell.
Even if PB doesn’t expand there isn’t any reason for it to deflate either barring a black swan. So BVPS growth should ~= share price growth.
If we were at 2.5 or 3x PB right now then near term slowdown might be a more cause of concern.
These are just my biased views, as I intend to hold for long. Others may disagree with it.
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The level of detail and (genera industry and bank specific) insights shared is quite something.
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It always was 0. Never had a promoter. And even if any company’s promoter holding became 0, how is that a trigger to buy now?
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I’m not sure, I saw Dolly Khanna purchase and I also noticed the Promoter percentage fall to 0. I’m curious as to why this happened. I haven’t been able to ascertain the reason.
Hi,
It’s mainly because of the reverse merger of Ujjivan Small Finance Bank (SFB) and Ujjivan Financial Service.The reverse merger, in this case, brings down the promoter shareholding to zero as post merger.
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How are the promoters represented in this case? Could you explain?
Thank you.
I think after the merger complete we could see . But what I think is that they might be within public zone and holding a portion after the amalgamation we could see a change in the structure.
The bank never had any promoters. The founder Samit Ghosh was selfless and never kept equity for himself or his family. The hold co. Was formed because of RBI requirements during SFB license in 2016.
Please read the forum, company’s history, annual reports, conference call transcripts before investing.
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I see, thanks for sharing that.
Usually, the promoter’s stake in the company acts as an incentive for the promoters to work hard to reap the benefits of the company’s profits. If there is no stake for the promoter, that is something that is worrisome. While I am not of the view that management cannot take the company places, it is still something that has occurred to me.
Thanks again. I am reviewing everything about the company.
HDFC bank doesn’t have any promoters. Most companies are professionally run with ESOPs incentivizing the C-suite and managerial employees to perform.
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Looks like every member of the team is on podium. Is this norm in micro finance companies or it’s unique to Ujjivan?
Thanks
This is the Annual Investor Day meet. This initiative was started last year I believe. Not all SFBs / MFIs are conducting this. So difficult to comment.
The team here comprises Business Heads and Senior management team. The team on the regular quarterly investor calls comprises fewer senior management personnel
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During Nitin Chugh’s time, it used to be a one-man show as evident from the concalls. He used to answer everything. Obviously, this was realized in hindsight and I didn’t pick it up at that time. But when Samit Ghosh and now Ittra Davis conducts conferences it has always been a team effort. They always let the respective dept. heads answer the relevant Qs.
This is surely not unique to Ujjivan as a company. Most companies operate as a team.
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NII,NIM, PPoP increased YoY.
Also npa increased both Gross and net. Is it the same reason which MD Ittiras Davis mentioned about impact of farm loan wavier in haryana. Even in con call he mentioned the same.
I’m just thinking the results are in-line with the expectations. As the stock corrected a lot after the commentary on the loan wavier in haryana few weeks back and it is priced in.
ROA no guidance in concall as it depends on product mix, and they are trying to build on secured loan book.
But ROE is something they are guiding it can be maintained.
There is information on applying license for universal banking, but management didn’t comment on the impact as it is too far fetched at this point of time to comment on.
Please add on if anything is wrong or missed.
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They are guiding that more than half of their loan portfolio would be secured till 2026
After maybe they can try for universal bank license
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I think the guidance is to reach 40% secured book by March,26
Whereas they have clearly said that they will apply for Universal Banking licence in the current financial year.
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Yeah but i am following this bank from last 2 years and in 2023 they said by 2026 more than half of their portfolio would be secured so just tracking that
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