In early trade on Wednesday, shares of one of the largest microfinance institutions rose 5.2 percent to Rs 525 per share after BNP Paribas Arbitrage and Abakkus Emerging Opportunities Fund acquired a 1.5 percent stake.
Ujjivan Financial Services Ltd shares closed at Rs 517.05 apiece, up Rs 21.50 or 4.34 percent from the previous close, Company has a market capitalization of Rs 6,292 crores.
As per the NSE reports, On August 14, Newquest Asia Investments II sold 30 lakh equity shares, or 2.46 percent of Ujjivan Financial Services, in the open market at an average price of Rs 495.19 per share. Abakkus Emerging Opportunities Fund-1 purchased 11.50 lakh shares, while BNP Paribas Arbitrage purchased 6.79 lakh.
The company’s profitability ratios have improved, with return on equity growing from negative 8.25 percent to 27.63 percent and return on capital employed rising from 3.65 percent to 10.04 percent.
The company’s stock has earned multibagger returns of 180 percent over a year. A shareholder’s investment of Rs. 1 lakh in the business would be worth Rs. 2.80 lakhs after a year.
The company reported a 36 percent rise in revenue for the June quarter, at Rs 1,375 crore, compared to Rs 1,006 crore in the same quarter last year (Q1FY23). Furthermore, net profit increased to Rs 298 crore from Rs 295 crore in the previous year.
As per the present shareholding pattern, foreign institutional investors hold 40.48 percent of the company, domestic institutional investors own 3.86 percent, and retail investors own 55.65 percent.
Ujjivan is a Microfinance Institution serving economically active urban and semi-urban individuals.
Written by Omkar Chitnis
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
