Ujjivan Financial Services extends rally; surges over 40% post FY16 results

The stock hit high of Rs 364 on the BSE in intra-day trade, zoomed 73% against its issue price of Rs 210 per share.

Ujjivan Financial Services has rallied 9% to Rs 364, extending its over 30% rally in past seven trading sessions on the BSE, after the microfinance company posted robust earnings for the financial year 2015-16 (FY16).

The stock currently is trading at its highest level since listing on the bourses on May 10, 2016. It has rallied 43% in past eight trading sessions from Rs 255 on May 20, as compared to 6.6% rise in the S&P BSE Sensex. The stock zoomed 73% compared to its issue price of Rs 210 per share.

The company that also holds a small finance bank licence had reported a more than doubled net profit of Rs 177 crore for FY16, on the back of strong operational income. It had profit of Rs 76 crore in FY15.

Announcing its first ever results post listing, the company said its net interest income (NII) increased 82% to Rs 510 crore in FY16 against Rs 281 crore in the previous fiscal. Net interest margin (NIM) had improved from 11.62% to 12.31% during the fiscal.

Ujjivan Financial Services earmarked more than Rs 300 crore for its proposed small finance banking operations, to be invested for implementing & integrating its core banking Technology over the next five years.

At 10:07 AM, the stock was up 7% at Rs 357 on the BSE. A combined 3.5 million equity shares changed hands on the counter on the BSE and NSE so far.