Coming to the valuation.
Current Reserves and surplus should is around ~4950 cr and the Market Cap is 8700 Cr. So, trading at ~1.75x P/B. And probably trading at 1.4X FY25 P/B.
This seems decently valued.
One important thing to not is that, the bank didn’t have to creating provisons during last few quarters as they had already provided more than required during Covid times. But going forward the bank will ho back to normal provisons and the profits won’t be growing as fast.
At peak it was trading close to 3x P/B. It may reach that peak valuation of the whole banking sector does well. If not, we can’t expect Ujjivan to trade at 3x P/B while HDFCBANK, Axis, ICICI IDFC trades at 1.5x to 2.5x P/B
Just sharing my opinion. Not a reco. No position in any banks at the moment
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