"Ujjivan Financial Services reached our target price and we thought of downgrading it today," said MB Mahesh of Kotak Institutional Equities and author of the report, to CNBC-TV18.

Mahesh said there are two parts to this entire report. One, we are discussing the entire farm loan waiver. Second, we are discussing what the impact will be for banks and micro finance institutions (MFIs).

“Ujjivan was a downgraded which was more driven by price target achievement as well from our side,” he added.