Utkarsh Small Finance Bank Limited (UTKARSHBNK) AI Stock Analysis

• Market Cap: ₹21.30B
• Dividend Yield: 2.82%
• Average Volume (3M): 1.67M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.42
• Revenue Growth: 2.35%
• EPS Growth: -261.81%
• Country: IN
• Employees: 16,081
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): -2.11
• Shares Outstanding: 1,779,523,700
• 10 Day Avg. Volume: 665,369
• 30 Day Avg. Volume: 1,665,602
• PEG Ratio: -1.10
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.57
• P/FCF Ratio: -0.73
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -5.35
• Revenue Forecast (FY): ₹20.98B

• Rating: 45 Neutral
• Price Target: ₹11.50 ▼(-19.64% Downside)
• Action: Reiterated Date: 11/07/25
• Date: Action: Reiterated 11/07/25

The overall stock score of 45 reflects significant financial challenges, including declining revenue and profitability, as well as liquidity concerns. Technical analysis indicates a bearish trend with weak momentum, and valuation metrics are concerning due to negative earnings. The dividend yield provides some support, but overall, the stock faces considerable risks.

Positive Factors

Underserved retail focus

A focused business model serving underserved and unserved customers creates durable demand and sticky deposit relationships. Over 2-6 months this supports stable retail deposit funding, cross-sell opportunities and lower correlation to corporate cycles, aiding persistent revenue visibility.

Improved leverage and equity base

A sub-1.0 debt-to-equity and a double-digit equity ratio indicate stronger capitalization versus prior periods. This durable improvement increases buffer against credit losses, supports regulatory ratios and gives the bank scope to expand lending capacity without immediate external recapitalization.

Positive FCF to net income conversion

A FCF-to-net-income ratio above 1 suggests the bank can convert accounting profits into cash available for reinvestment or strengthening liquidity. Over months this helps fund branch/digital investments and absorb shocks even if operating cash flow fluctuates.

Negative Factors

Steep revenue and margin decline

A pronounced fall in revenue growth and collapse in net margin materially weakens profitability sustainability. Over several months this reduces retained earnings, limits internal capital for growth, increases sensitivity to credit costs and undermines long-term ability to restore ROE.

Negative operating cash flow and liquidity concerns

Persistently negative operating cash flow signals structural cash generation issues and raises reliance on external funding or deposit growth. Over a 2-6 month horizon this elevates liquidity and refinancing risk, potentially forcing higher funding costs or curtailment of loan origination.

Very low return on equity

ROE near zero indicates poor capital efficiency and weak returns to shareholders. This durable weakness constrains the bank’s ability to attract fresh equity, makes future capital raises costly or dilutive, and limits strategic investments needed to restore growth.

Utkarsh Small Finance Bank Limited Business Overview & Revenue Model

Company Description

Utkarsh Small Finance Bank Limited provides banking and financial services in India. The company offers savings account, fixed, recurring, and tax saver fixed deposits; debit, credit, and other cards; home, LAP retail, personal, gold, and other loans; life and general insurance; investment products; and remittance, bill payment, locker facility, overdraft facility against fixed deposits, ATM and branch banking, and internet and mobile banking services for individual customers. It also provides current and institutional banking accounts; micro banking group, MSME, wholesale, micro banking business, commercial vehicle and construction equipment, and other loans; life and general insurance; various investment products; and remittance, bill payment, ATM, and internet and mobile banking services for business customers. The company was incorporated in 2016 and is based in Varanasi, India. Utkarsh Small Finance Bank Limited operates as a subsidiary of Utkarsh CoreInvest Limited.

How the Company Makes Money

Utkarsh Small Finance Bank primarily makes money through (1) interest income from lending and investing and (2) fee and other non-interest income from providing banking services. 1) Net interest income (core earnings): The bank accepts deposits (savings, current, and term deposits) and other borrowings, and uses these funds to extend loans and to invest in permitted instruments. Revenue is generated from the interest charged on its loan portfolio and the yield earned on its investment portfolio. Its key profitability driver is the spread between (a) yield on advances/investments and (b) the cost of funds (interest paid on deposits and borrowings), resulting in net interest income. 2) Fees and commissions (non-interest income): The bank earns fees for customer transactions and services such as account-related charges, remittances/transfer services, payment services, distribution-related commissions (where applicable), and other service fees typical to a retail-focused bank. 3) Other income and recoveries: Additional earnings can include income from treasury/financial market activities permitted for banks (e.g., gains/losses on eligible investment/trading activities) and recoveries from previously written-off or delinquent loans, where applicable. 4) Credit costs and regulations affect earnings quality: While not revenue, the bank’s net earnings are materially influenced by credit costs (provisions for bad loans) and regulatory requirements specific to small finance banks (e.g., priority sector lending norms and liquidity/investment requirements), which affect portfolio mix, risk, and overall profitability. Significant partnerships or specific counterparties contributing to earnings: null

Utkarsh Small Finance Bank Limited Financial Statement Overview

Summary

Utkarsh Small Finance Bank Limited faces a challenging financial environment with declining revenue and profitability, as evidenced by the income statement. While the balance sheet shows improved leverage, profitability metrics have weakened. The cash flow statement highlights liquidity concerns, with negative cash flows posing a risk to financial stability. Overall, the company needs to address revenue growth and cash flow management to improve its financial health.

Income Statement

The income statement shows a significant decline in revenue growth rate at -43.11% for the latest period, indicating a challenging environment. Margins have also deteriorated, with the net profit margin dropping to 1.44% from 21.77% the previous year. This suggests pressure on profitability, although the gross profit margin remains high at 100% due to the nature of the banking industry.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.79, which is an improvement from previous years. However, return on equity has decreased significantly to 0.80%, indicating reduced profitability on shareholders' equity. The equity ratio stands at 10.57%, suggesting a stable equity base relative to total assets.

Cash Flow

Cash flow analysis reveals significant challenges, with negative operating cash flow and free cash flow in the latest period. The free cash flow to net income ratio is positive at 1.05, but the overall cash flow position is concerning due to negative growth and coverage ratios, indicating potential liquidity issues.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	41.60B	43.65B	35.79B	28.04B	20.34B	17.06B
Gross Profit	22.71B	26.22B	22.86B	18.28B	12.46B	9.64B
EBITDA	-10.11B	1.04B	7.25B	5.94B	1.21B	1.81B
Net Income	-7.53B	237.00M	4.98B	4.05B	614.62M	1.12B
Balance Sheet
Total Assets	273.84B	281.27B	239.03B	191.17B	150.64B	121.38B
Cash, Cash Equivalents and Short-Term Investments	38.33B	34.37B	30.27B	25.16B	18.72B	11.70B
Total Debt	19.58B	23.55B	61.96B	61.03B	54.33B	48.40B
Total Liabilities	249.90B	251.53B	209.29B	171.17B	134.91B	107.70B
Stockholders Equity	23.94B	29.75B	29.73B	20.00B	15.72B	13.68B
Cash Flow
Free Cash Flow	26.09B	-33.76B	10.41B	14.97B	11.82B	-1.63B
Operating Cash Flow	26.94B	-32.18B	11.11B	15.73B	13.29B	-834.63M
Investing Cash Flow	-17.82B	-7.77B	-6.20B	-6.93B	-7.39B	-5.32B
Financing Cash Flow	-5.15B	44.04B	39.02B	34.01B	26.78B	1.72B

Utkarsh Small Finance Bank Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:UTKARSHBNK, the sentiment is Negative. The current price of 14.31 is above the 20-day moving average (MA) of 13.26, above the 50-day MA of 13.74, and below the 200-day MA of 17.07, indicating a bearish trend. The MACD of -0.52 indicates Positive momentum. The RSI at 33.67 is Neutral, neither overbought nor oversold. The STOCH value of 15.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:UTKARSHBNK.

Utkarsh Small Finance Bank Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAPITALSFB	72 Outperform	₹10.46B	8.67	―	1.97%	13.76%	11.77%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ARMANFIN	61 Neutral	₹14.98B	18.43	―	―	-6.03%	-100.77%
UJJIVANSFB	60 Neutral	₹99.80B	13.80	―	2.82%	6.15%	-64.12%
EQUITASBNK	56 Neutral	₹63.70B	19.93	―	1.63%	10.02%	-120.18%
SURYODAY	51 Neutral	₹13.47B	10.24	―	―	―	―
UTKARSHBNK	45 Neutral	₹21.30B	-1.76	―	2.82%	2.35%	-261.81%

Utkarsh Small Finance Bank Limited Corporate Events

Utkarsh Small Finance Bank Files NCLT Application for Amalgamation with Utkarsh CoreInvest

Utkarsh Small Finance Bank Limited has announced that a joint application for the proposed amalgamation of its promoter entity, Utkarsh CoreInvest Limited, with the bank has been filed with the National Company Law Tribunal (NCLT), Allahabad Bench, under the relevant provisions of the Companies Act, 2013. The filing seeks NCLT directions for convening meetings of equity shareholders and other stakeholders, marking a key regulatory step in the amalgamation process that, once approved, is expected to simplify the group structure and potentially enhance governance and operational alignment between the bank and its parent entity.