Mutlibagger banking stock zooms 120% in 1 yr, hits 52-wk high; check latest target prices

Ujjivan Small Finance Bank target price: Shares of Ujjivan Small Finance Bank small finance bank extended their bull run on Friday as the stock soared another 10 per cent today, extending the two-day gains to 20 per cent, led by the momentum built after a strong Q3 show. Analysts, however, see more legs to the rally.

Shares of Ujjivan Small Finance Bank Ltd gained more than 9.6 per cent to Rs 68 on Friday, hitting its new 52-week high. The stock has gained nearly 20 per cent from its levels around Rs 56.7 on Wednesday. The stock has soared more than 120 per cent from its 52-week low at Rs 30.85 hit a year ago. The stock is up 40 per cent in the last one month.

Ujjivan Small Finance Bank's net profit for December 2025 quarter grew 71 per cent on a year-on-year (YoY) basis to Rs 186 crore. Its net interest income (NII) or core income saw growth of 12.8 per cent YoY to Rs 1,001 crore for the reported quarter, with net interest margins (NIMs) coming at 8.2 per cent.

Asset quality of the lender improved on a sequential basis with gross NPA improving to 2.38 per cent from 2.45 per cent in September 2025 quarter, while Net NPAs stood at 0.57 per cent from 0.67 per cent in September 2025 quarter. The rise in the share of secured loans to 48 per cent from 39 per cent a year back has lent stability to its asset quality.

Ujjivan Small Finance Bank's Q3FY26 RoA improved to 1.5 per cent, driven by a strong uptick in revenue, aided by NIM expansion and subsiding stress in MFI. Management highlighted that it is on track to achieve its 1.2–1.4 per cent RoA target for FY26, implying Q4FY26 RoA could be 1.5 per cent," said ICICI Securities with a revised target price of Rs 75 apeice.

"Q3FY26 was a better quarter with improvement in core performance. Considering better industry tailwinds and improving growth momentum and profitability trajectory, we raise our target price to Rs 72 as we roll forward to December 2027E, said Elara Capital. "Sustained funding cost benefits , moderation in credit costs and improving return ratios could support a valuation re -rating in the medium term."

Ujjivan SFB delivered a strong quarter in 3QFY26, driven by healthy loan growth, sharp uptick in margins and improving asset quality. AUM growth was healthy with disbursements growing 55 per cent YoY. NII was up 12 per cent QoQ, supported by NIMs rising 30 bps QoQ at 8.2 per cent and a further decline in CoF of 7.1 per cent, said JM Financial.

"PPoP rose 22 per cent YoY with strong scale benefits despite elevated operating expenses. Asset quality remained comfortable with gross/net slippages down 83bps/92bps QoQ and PCR increasing by 300bps. Management reiterated confidence in achieving FY26 RoA guidance driven by lower credit costs, stronger disbursements and declining CoF," it said with a 'buy' rating and a target price of Rs 73.

HDFC Securities believe Ujjivan is better placed compared to other MFI players, given its geographical diversification, higher employee vintage, larger urban/metro presence, and superior underwriting. "We cut our FY26E/FY27E/FY28E earnings estimates by 11 per cent/8 per cent/6 per cent, factoring in higher provisioning while maintaining 'add' with a revised target price of Rs 65."

"We have made marginal upward revisions to our loan growth and cost assumptions, resulting in a 4-5 per cent upgrade to our FY27/FY28 PAT estimates. We also lower our cost of equity assumption, reflecting improved earnings visibility and higher geographic and product diversification. This results in a revised target price of Rs 75," said Systematix Institutional Equities with a 'buy' tag.