UCOBANK - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.5

Here’s a comprehensive analysis of UCO Bank (UCOBANK) based on the stock and financial metrics you’ve shared

💰 Core Financials

Profitability

ROE: 8.50%, ROCE: 5.76% — modest returns compared to sector leaders

EPS: ₹1.97 — low earnings per share, which limits valuation upside

Quarterly PAT Growth: 23.8% — healthy momentum but not transformative

Asset & Capital Efficiency

Debt-to-Equity: 10.4 — typical for banks but reflects high financial leverage

Book Value: ₹24.6 — supports decent price-to-book dynamics

📈 Valuation Indicators

Metric Value Insight

P/E Ratio 15.4 Above industry average (7.49) — implies investor optimism or overvaluation

P/B Ratio ~1.23 Reasonable — reflects fair asset pricing

PEG Ratio 0.38 Attractive — growth-adjusted valuation signals undervaluation

Dividend Yield 1.29% Decent — offers modest passive income

🏦 Business Model & Competitive Standing

Type: Public sector bank

Strengths

Solid presence in rural and semi-urban markets

Backed by government, which provides stability

Weaknesses

Limited pricing power

Historically underperformed in asset quality and digital adoption

Growth Drivers

Rise in retail lending

Potential restructuring or consolidation in PSU banks

📉 Technical Picture

RSI: 35.5 — nearing oversold territory, which could trigger accumulation

MACD: -0.32 — mild bearish momentum, watch for flattening

DMA: Trading below both 50-DMA and 200-DMA — short-term weakness visible

Volume: Lower-than-average — subdued investor activity

🎯 Entry Zone & Strategy

Suggested Entry: ₹28.0–₹30.0 — close to near-term support and RSI lows

Target Holding Zone: ₹40–₹45 over next 12–15 months, subject to earnings and restructuring tailwinds

Investor Profile Fit: Best for contrarian or deep-value investors looking for turnaround stories in PSU banking

Would you like to map its prospects alongside Bank of India or Union Bank for a broader PSU bank outlook? Or get insights into stress test metrics and NPA trends shaping valuations? Let’s go further.

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