Today, we are going to estimate the Utkarsh Bank Share Price Target 2024 to 2050 Long Term Prediction. Utkarsh Bank is listed on the NSE under the symbol “UTKARSHBNK” and on the BSE with the code “543942”. let’s analyze the future of Utkarsh Bank shares as well, including whether it’s a good time to buy or sell them today.
Additionally, we will also take into analysis Utkarsh Bank Share Recommendations from various brokerage firms, including Target’s High Price, Target’s Low Price and Recommendation at the end of the article.
Profile of Utkarsh Bank
| Name | Utkarsh Small Finance Bank |
|---|---|
| Industry | Banking |
| Founded | 2009 |
| Services | Financial services |
| Product | Microfinance, Retail banking, Deposits, Loans |
| Country | India |
| Website | www.utkarsh.bank |
| Profile | Utkarsh Bank |
Keep an eye on Utkarsh Bank’s share price today with real-time updates, and examine its performance on the stock market through comprehensive charts that display the fluctuations in Utkarsh Bank’s stock price.
About Utkarsh Bank Company
Utkarsh Small Finance Bank Established in 2009, the bank has strategically concentrated on rural and semi-urban areas, aiming to address the financial needs of these often overlooked segments of the population. This strategic approach has resulted in a robust branch presence, particularly in the states of Uttar Pradesh and Bihar, where Utkarsh has established itself as a key financial institution.
The bank’s journey began with microfinance lending in Varanasi, Uttar Pradesh, and over the years, it has expanded its operations to encompass a wide range of financial offerings, including retail banking, deposits, and various types of loans.
Utkarsh’s commitment to these regions is evident in its extensive distribution network, which comprises over 830 banking outlets spread across 26 states and union territories, covering 253 districts as of March 2023. This widespread presence has enabled the bank to serve a substantial customer base of 3.9 million individuals while also attracting new customers through its multi-channel strategy.
Furthermore, Utkarsh’s foray into diverse asset classes such as two-wheeler loans, gold loans, mortgages, and MSME (Micro, Small and Medium Enterprises) financing has broadened its product portfolio, catering to a wider spectrum of financial needs. Utkarsh Small Finance Bank’s journey from a microfinance institution to a small finance bank has been marked by a well-executed transition, positioning it as a formidable player in the Indian banking landscape.
Financial of Utkarsh Bank
Conduct a SWOT analysis of Utkarsh Bank Share based on its financials. We will break down the key elements of strengths, weaknesses, opportunities, and threats using the financial data.
Strengths–
Consistent Revenue Growth: Utkarsh Bank has shown a remarkable increase in total revenue over the years, from ₹9,640,950,000 in 2021 to ₹20,040,494,000 in the trailing twelve months (TTM). This indicates a robust and growing business model.
Stable Net Income: The net income for common stockholders has significantly increased from ₹1,118,150,000 in 2021 to ₹4,492,140,000 in TTM. This reflects strong profitability and efficient management.
Solid Asset Base: The total assets have grown steadily, from ₹121,379,120,000 in 2021 to ₹191,175,420,000 in 2023, signifying a sound financial foundation.
Weaknesses–
Negative Operating Cash Flow in TTM: The bank recorded a negative operating cash flow of ₹-5,283,901,000 in TTM, which might indicate challenges in day-to-day financial management.
High Debt Levels: As of 2023, the total debt stands at ₹23,467,030,000. This level of debt could be a concern, particularly if it limits the bank’s flexibility in financial operations.
Fluctuating Free Cash Flow: The bank’s free cash flow has been inconsistent, showing a significant drop to ₹-5,591,853,000 in TTM, which may affect its ability to fund expansions or pay dividends.
Opportunities–
Growing Indian Economy: As the Indian economy expands, there is an opportunity for Utkarsh Bank to tap into new markets and customer segments.
Digital Banking: Embracing digital transformation and fintech could open new revenue streams and improve operational efficiency.
Diversification: Diversifying its service offerings can reduce dependence on traditional banking revenue sources.
Threats–
Competitive Market: The Indian banking sector is highly competitive, with several major players dominating the market. Standing out requires innovative strategies.
Regulatory Changes: The banking sector in India is subject to stringent regulations, and any changes could impact operations.
Economic Fluctuations: Being in a dynamic economic environment, factors like inflation and interest rate changes can affect banking operations significantly.
Brokerage Firms
An effective method for evaluating the Utkarsh Bank share price Target is by examining research reports and analyses conducted by reputable financial institutions and brokerage firms. The latest research reports are available on Utkarsh Bank.
| DATE | AUTHOR | TARGET | TYPE |
|---|---|---|---|
| 03 JAN 2024 | ICICI Securities | 70 | Buy |
The financial services firm ICICI Securities published the latest research report on Utkarsh Bank Share Price Target, assigning a ‘buy’ rating with a share price target of Rs. 70 from its current market price of Rs. 54.
Utkarsh Bank, with its strong foothold in states like Uttar Pradesh and Bihar, has demonstrated an exceptional ability to manage asset quality, faring better than its peers during challenging times like the COVID-19 pandemic. The bank’s write-offs during this period stood at 12%, compared to the 15-20% at other Microfinance Institution (MFI) players. This resilience is a testament to the bank’s prudent risk management and portfolio quality.
Notably, the bank’s Assets Under Management (AUM) has grown at a Compound Annual Growth Rate (CAGR) of 34% between FY18-23, owing to its diversified asset mix. As of September 2023, the non-MFI book contributes 38% to the total AUM. This diversified approach, coupled with tight control of costs and stable asset quality, has positioned Utkarsh as a leader in profitability in the industry. For instance, its Return on Equity (RoE) averaged 12% between FY21-23, outperforming its peers.
As of FY23, Utkarsh’s market share in UP and Bihar stood at 1.7% and 0.6%, respectively. Furthermore, the bank has been enhancing its product offerings, including two-wheeler loans, gold loans, mortgages, MSME loans, and commercial vehicle loans. This broadening of services is likely to leverage its network of over 250 branches.
In terms of valuation, Utkarsh’s transition from a Non-Banking Financial Company (NBFC) to an SFB has been notably smooth. This is reflected in its growing market share in UP and Bihar, significant AUM growth, and the maintenance of higher efficiencies, evidenced by one of the lowest cost-to-income ratios amongst SFBs at 54% in FY23.
On the liabilities side, the increase in the share of retail deposits to 41% in FY23, up from 21% in FY19, indicates effective execution in building a granular liability base. The bank’s strategy to build contingency provisions brings added sustainability to its Profit and Loss (P&L) statements.
With an expected Return on Assets (ROA) trajectory of over 2% and more than 25% AUM growth during FY24-FY26E, Utkarsh SFB presents a promising investment opportunity. The target price of INR 70, valued at 2.0x FY25E Price/Adjusted Book Value (P/ABV), reflects the bank’s successful transition and strategic positioning in the Indian banking sector.
Long-Term Prediction
We will analyze the performance of the company’s shares in recent times and provide you with a well-researched Utkarsh Bank Share Price Target 2024, 2025, 2030 to 2050 based on our Research knowledge and forecasting.
| Year | Minimum Share Price (₹) | Maximum Share Price (₹) |
|---|---|---|
| 2024 | ₹60 | ₹70 |
| 2025 | ₹65 | ₹80 |
| 2026 | ₹70 | ₹90 |
| 2027 | ₹75 | ₹100 |
| 2028 | ₹80 | ₹110 |
| 2029 | ₹85 | ₹120 |
| 2030 | ₹90 | ₹130 |
| 2035 | ₹120 | ₹200 |
| 2040 | ₹150 | ₹300 |
| 2045 | ₹200 | ₹500 |
| 2050 | ₹250 | ₹700 |
Analyst Recommendations
Utkarsh Bank Buy or Sell
Daily Low / High
Peer Comparison of Utkarsh Bank
| Name | P/E | Mar Cap Rs.Cr. |
|---|---|---|
| HDFC Bank | 18.92 | 1280206.82 |
| ICICI Bank | 17.17 | 689943.26 |
| Kotak Mah. Bank | 21.62 | 371380.26 |
| Axis Bank | 14.69 | 344197.35 |
| IndusInd Bank | 15.26 | 126719.80 |
| IDBI Bank | 15.69 | 74911.99 |
| Yes Bank | 79.38 | 66410.48 |
| Utkarsh Small F. | 13.49 | 6050.44 |
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– As of 4 January 2024, the current share price of Utkarsh Bank is ₹55.54 Check out today’s current share price of Utkarsh Bank in the top.
– According to Google historical data, the price of Utkarsh Bank on 21 JUL 2023 was ₹48.
– The latest research report from ICICI Securities sets a Utkarsh Bank Share Price Target of Rs.70.
– Based on our analysis, the maximum Utkarsh Bank Share Price Target in 2025 is projected to be ₹80.
– Based on our analysis, the maximum Utkarsh Bank Share Price Target in 2027 is projected to be ₹100.
– Based on our analysis, the maximum Utkarsh Bank Share Price Target in 2030 is projected to be ₹130.
– Based on our analysis, the maximum Utkarsh Bank Share Price Target in 2035 is projected to be ₹200.
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I would like to remind you that I am not authorized by SEBI to provide any financial advice or recommendations. As you know, Share price prediction is not an exact science, That’s why I am conducting in-depth research and using different AI tools to predict share prices.
Disclaimer– These Share Price Targets for “Utkarsh Bank Share Price Target” are only provided for informational purposes. It does not constitute a recommendation to buy, sell, or hold Utkarsh Bank stock. Investors should conduct their research and analysis and consult with financial experts before making any investment decisions— Sharedhan.com
