Dolly Khanna bought 13,74,146 shares & DIIs increase stake in this multibagger NBFC stock; scrip trades at low PE & high ROCE!

The stock gave multibagger returns of 115 per cent in just 1 year and a whopping 315 per cent in 2 years.

In a rare move honouring a momentous occasion, the Indian stock market held a special Saturday trading session on January 20, 2024, from 9 am to 3:30 pm, opting to close its doors on the following Monday, January 22. This unique schedule accommodated both the Ram Mandir ‘Pran Pratishtha’ ceremony in Ayodhya, a day of immense significance for Hindus marking Lord Ram's return to his home after 500 years, and a public holiday declared by the Maharashtra government.

This closure resonated with the joyous Diwali-like celebrations not just in India, but across the globe, as the world joined hands to celebrate this historic event. While unusual, the stock market's decision served as a powerful symbol of respect for the profound impact of this spiritual milestone on the nation and its people.  

In the Non-Banking Financial Company (NBFC) sector, a prominent investor, Dolly Khanna with a portfolio valued at around Rs 514 crore emerged as a significant player by making a fresh entry and acquiring 13,74,146 shares, representing a 1.13 per cent stake in the company. Furthermore, during the period from September 2023 to December 2023, Domestic Institutional Investors (DIIs) augmented their stake in the company from 6.03 per cent to 7.44 per cent respectively.

The stock name is Ujjivan Financial Services Ltd.

Ujjivan Financial Services Ltd started as an NBFC-MFI in 2013 but transformed into a core investment company in 2017 after transferring its microfinance business to its subsidiary, Ujjivan Small Finance Bank (USFB). USFB now drives Ujjivan's value through its extensive network of 575 branches and 65 lakh customers across India.

With a focus on diversifying products, enhancing digital banking, and building a strong retail deposit base, USFB aims to achieve sustainable growth while improving asset quality and key financial ratios. The recent amalgamation plan further strengthens this vision by merging Ujjivan Small Finance Bank Ltd (USFB) and Ujjivan Financial Services, paving the way for a streamlined future.

Ujjivan Financial Services Ltd has a market cap of over Rs 7,000 crore and has delivered good profit growth of 103 per cent CAGR over the last 5 years. The company reported amazing numbers in its Quarterly Results and annual results.

On Saturday, shares of Ujjivan Financial Services Ltd plunged 0.56 per cent to Rs 591.90 per share with an intraday high of Rs 605.45 and an intraday low of Rs 585.30. The stock’s 52-week high is Rs 614.70 and its 52-week low of Rs 233.20.

The shares of the company have a PE of 8.65x whereas the industry PE is 22.6x and have an ROE of 32.1 per cent. The stock gave multibagger returns of 115 per cent in just 1 year and a whopping 315 per cent in 2 years.

Do you own Ujjivan Financial Services Ltd.’s stock in your portfolio? Do let us know in the comments below

Disclaimer: The article is for informational purposes only and not investment advice.