Ujjivan Small Finance Bank Stock Sees Target Price Hike Despite Daily Drop

Shares of Ujjivan Small Finance Bank closed lower at ₹61.95 on Wednesday, October 21, marking a 1.92% drop on the BSE. The bank holds a market capitalisation of ₹12,098.62 crore. Short-term figures show the stock has dipped 4.28% in one month and 5.77% in three months.

Performance and Growth

Despite the recent dip, the Bengaluru-headquartered lender has posted strong overall gains. The share price is up 16.10% so far in 2026, and has climbed 22.75% over the past year. Looking further back, the stock has jumped around 61% in two years and delivered 177.18% returns across five years. The bank reported a better-than-expected financial performance in the first half of the financial year 2026-27.

Brokerage Outlook

ICICI Securities kept its 'Buy' rating on the stock and raised its target price to ₹95 from ₹90. The brokerage sees nearly 51% upside potential for the shares. Management now expects the full-year FY27 return on assets to cross its starting guidance range of 2%, driven by strong growth and stable asset quality. At the same time, a 25 basis points repo rate hike creates a 10 basis points headwind to net interest margin compression in the second half of FY27. The bank also completed a well-timed capital raise of ₹4.1 billion through a preferential issuance to the International Finance Corporation and other investors.

Context

Small finance banks in India focus on basic banking services for unserved and underserved sections, including small businesses and micro industries. Brokerage firms regularly review these financial institutions to guide retail investors on stock valuations and expected future returns.