UTKARSH SMALL FINANCE BANK SHARE PRICE TARGET 2024, 2025, 2026 TO 2030: CAN UTKARSH SMALL FINANCE BANK REACH 100 INR?

Utkarsh Small Finance Bank Ltd, trading at ₹59.2 as of the close on February 2nd, is a dynamic player in the financial sector. Incorporated in 2016, the bank has been instrumental in providing essential banking and financial services to its customers. 

With a market capitalization of ₹6,503 Cr. and a stock P/E of 13.8, Utkarsh Small Finance Bank has positioned itself as a prominent scheduled commercial bank. Led by MD & CEO Govind Singh, the bank’s mission is to cater to underserved sections of the population.

As a Scheduled Commercial Bank registered with the Reserve Bank of India, Utkarsh Small Finance Bank holds the potential to be a significant player in the financial landscape, prompting the question of whether it can attain a share price of 100 INR by 2030.

About Utkarsh Small Finance Bank

Utkarsh Small Finance Bank Limited, established on April 30, 2016, is a financial institution dedicated to providing banking services, particularly microfinance, to underserved and unserved segments of the population.

With its operations commencing on January 23, 2017, following the grant of a small finance banking license by the RBI, the bank focuses on offering microfinance loans through the Joint Liability Group (JLG) model, catering to rural and semi-urban areas.

Beyond microfinance, the bank extends various retail and enterprise-focused loans, encompassing MSME Loans, Housing Loans, Personal Loans, Commercial Vehicle Loans, Construction Equipment Loans, and Wholesale Lending. With a headquarters in Varanasi, Uttar Pradesh, Utkarsh Small Finance Bank also emphasizes digital services, including Internet and Mobile Banking, Digi Onboarding, and online account opening, contributing to enhanced accessibility for its clientele.

Q3 2023 Financial Performance Highlights

• • Robust Revenue Growth: The company’s revenue witnessed consistent growth, reaching Rs. 756 Crores in Q3 2023, reflecting a positive trend from the previous quarters.
  • Steady Financing Profit: Financing profit demonstrated stability, increasing from Rs. 49 Crores in Q2 2023 to Rs. 69 Crores in Q3 2023, indicating improved financial performance.
  • Encouraging Financing Margin: The financing margin showed a positive trajectory, reaching 9% in Q3 2023, signifying efficient management of resources and increased profitability.
  • Diversified Income Streams: Other income remained significant, contributing Rs. 105 Crores in Q3 2023, reinforcing the company’s reliance on multiple revenue sources.
  • Consistent Profitability: Despite economic fluctuations, the company maintained consistent profitability, with a net profit of Rs. 116 Crores in Q3 2023.
  • Earnings per Share (EPS) Growth: Earnings per share (EPS) continued to grow, reaching Rs. 1.06 in Q3 2023, reflecting positive shareholder value and confidence.
  • Improving Asset Quality: Gross and Net NPA percentages continued to decline, showcasing the company’s commitment to managing credit risk effectively.
  • Prudent Tax Management: The company maintained a prudent approach to tax management, with a tax rate of 24% in Q3 2023, contributing to sustained profitability.
  • Forward-looking Financial Health: Overall, the Q3 2023 results indicate a sound financial health with a focus on growth, profitability, and effective risk management.

How to buy Utkarsh Small Finance Bank Shares?

You can buy Utkarsh Small Finance Bank shares through various stockbrokers and online trading platforms such as:

1. Zerodha
2. ICICI Direct
3. Sharekhan
4. HDFC Securities
5. Kotak Securities
6. Axis Direct
7. Upstox
8. 5Paisa
9. Angel Broking
10. Motilal Oswal

Utkarsh Small Finance Bank Share Price Target 2024 – 2030

Utkarsh Small Finance Bank Share Price Target for 2024

When	Maximum Price	Minimum Price
February 2024	63.94	55.60
March 2024	65.24	56.73
April 2024	63.34	55.08
May 2024	62.40	54.26
June 2024	64.65	56.22
July 2024	64.00	55.66
August 2024	66.56	57.88
September 2024	69.23	60.20
October 2024	67.87	59.02
November 2024	69.91	60.79
December 2024	71.65	62.31

Utkarsh Small Finance Bank Share Price Target for 2025

When	Maximum Price	Minimum Price
January 2025	73.09	56.22
February 2025	74.96	57.66
March 2025	77.88	59.91
April 2025	76.36	58.74
May 2025	74.13	57.03
June 2025	77.47	59.59
July 2025	75.95	58.42
August 2025	78.30	60.23
September 2025	81.04	62.34
October 2025	83.15	63.96
November 2025	85.23	65.56
December 2025	87.36	67.20

Utkarsh Small Finance Bank Share Price Target for 2026

When	Maximum Price	Minimum Price
January 2026	89.98	69.21
February 2026	92.28	70.99
March 2026	95.88	73.76
April 2026	94.00	72.31
May 2026	91.26	70.20
June 2026	95.37	73.36
July 2026	93.50	71.92
August 2026	96.39	74.15
September 2026	99.77	76.74
October 2026	102.36	78.74
November 2026	104.92	80.71
December 2026	107.54	82.73

Utkarsh Small Finance Bank Share Price Target for 2027

When	Maximum Price	Minimum Price
January 2027	109.69	84.38
February 2027	112.51	86.54
March 2027	116.89	89.92
April 2027	114.60	88.16
May 2027	111.26	85.59
June 2027	116.27	89.44
July 2027	113.99	87.69
August 2027	117.52	90.40
September 2027	121.63	93.56
October 2027	124.79	95.99
November 2027	127.91	98.39
December 2027	131.11	100.85

Utkarsh Small Finance Bank Share Price Target for 2028

When	Maximum Price	Minimum Price
January 2028	133.73	102.87
February 2028	137.16	105.51
March 2028	142.51	109.62
April 2028	139.72	107.47
May 2028	135.65	104.34
June 2028	141.75	109.04
July 2028	138.97	106.90
August 2028	143.27	110.21
September 2028	148.28	114.06
October 2028	152.14	117.03
November 2028	155.94	119.96
December 2028	159.84	122.96

Utkarsh Small Finance Bank Share Price Target for 2029

When	Maximum Price	Minimum Price
January 2029	163.04	125.41
February 2029	167.22	128.63
March 2029	173.74	133.65
April 2029	170.33	131.03
May 2029	165.37	127.21
June 2029	172.81	132.93
July 2029	169.43	130.33
August 2029	174.67	134.36
September 2029	180.78	139.06
October 2029	185.48	142.68
November 2029	190.12	146.24
December 2029	194.87	149.90

Utkarsh Small Finance Bank Share Price Target for 2030

When	Maximum Price	Minimum Price
January 2030	198.77	152.90
February 2030	203.86	156.82
March 2030	211.81	162.93
April 2030	207.66	159.74
May 2030	201.61	155.09
June 2030	210.68	162.07
July 2030	206.55	158.89
August 2030	212.94	163.80
September 2030	220.40	169.53
October 2030	226.13	173.94
November 2030	231.78	178.29
December 2030	237.57	182.75

Utkarsh Small Finance Bank Financial Condition: LAST 5 YEARS

Year	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Revenue (Rs. Crore)	881	1,308	1,581	1,849	2,505
Interest (Rs. Crore)	382	579	742	788	976
Expenses + (Rs. Crore)	392	551	783	1,125	1,234
Financing Profit (Rs. Crore)	107	177	56	-64	295
Financing Margin %	12%	14%	4%	-3%	12%
Other Income + (Rs. Crore)	58	99	125	185	299
Depreciation (Rs. Crore)	16	25	30	41	59
Profit before tax (Rs. Crore)	149	250	151	80	536
Tax %	37%	25%	26%	23%	25%
Net Profit + (Rs. Crore)	94	187	112	61	404
EPS in Rs	1.27	2.46	1.32	0.69	4.51
Dividend Payout %	0%	0%	0%	0%	0%

Over the past five years, Utkarsh Small Finance Bank has exhibited consistent growth in its financial performance. The bank’s revenue has steadily increased from ₹881 crore in March 2019 to ₹2,505 crore in March 2023, indicating robust business expansion.

Despite the varying economic conditions, the bank managed to maintain a healthy Financing Margin %, demonstrating its ability to generate profit from its core activities.

Moreover, the bank’s net profit has shown a significant upward trend, rising from ₹94 crore in March 2019 to ₹404 crore in March 2023, reflecting effective financial management and operational efficiency. The absence of dividend payouts suggests the bank’s focus on reinvesting in its operations and growth.

Also read:

• HDFC Bank Stock Price Target
• Indigo Paints Share Price Target 
• Nestle India Share Price Target 

FAQs

What is the share price target for Utkarsh Small Finance Bank by 2025?

Based on the projected analysis, the share price target for Utkarsh Small Finance Bank by 2025 could potentially be around ₹87.36.

What is the share price target for Utkarsh Small Finance Bank by 2030?

Considering the steady growth trajectory displayed in the analysis, the share price target for Utkarsh Small Finance Bank by 2030 might reach approximately ₹237.57. This projection reflects the bank’s consistent performance over the years.

Is it worthwhile to invest in Utkarsh Small Finance Bank for the long term?

The analysis indicates a positive and upward trend in Utkarsh Small Finance Bank’s share prices over the coming years. This suggests that investing in the bank for the long term could potentially yield favorable returns. However, it’s essential to conduct thorough research and consider various factors before making investment decisions.

Will the Utkarsh Small Finance Bank stock grow?

Yes, the data from the analysis indicates a growth pattern in Utkarsh Small Finance Bank’s stock over the years. With incremental increases in share prices projected annually, the bank’s stock appears to be on a growth trajectory, which can be encouraging for investors.

Can Utkarsh Small Finance Bank reach ₹100?

Considering the historical growth pattern and the projected trajectory, reaching ₹100 by the provided time frame seems achievable for Utkarsh Small Finance Bank’s share price. However, it’s important to acknowledge that actual stock performance can be influenced by various market factors and may differ from projections.

Conclusion: Should you invest in Utkarsh Small Finance Bank?

In analyzing Utkarsh Small Finance Bank’s potential share price trajectory from 2024 to 2030, several key observations emerge. The bank has recently listed on NSE and not much data is available for us to compare its current PE ratio with the past. However, compared to the industry standard, a PE of 13.8 can be considered as undervalued.

The company being a small cap, indicates there is a lot of scope for the company to grow. Recent financial reports suggest the bank is profitable. However, the company’s low-interest coverage ratio over the past three years does raise a little concern about its financial health.

With a relatively short history, the bank’s limited track record adds an element of uncertainty. Utkarsh Small Finance Bank is one of my favorite picks in small-cap companies, and I have taken a very small position.

I may keep adding more positions in the future as the company becomes more stable and profitable. If you are investing, do know there is always a risk with small-cap companies like Utkarsh Small Finance Bank, and you may lose your investment. I have understood the risk, and have taken a very small position in this stock for a mid to long term.