⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
UCOBANK - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | UCOBANK | Market Cap | 32,252 Cr. | Current Price | 25.7 ₹ | High / Low | 38.8 ₹ |
| Stock P/E | 12.3 | Book Value | 26.5 ₹ | Dividend Yield | 1.52 % | ROCE | 5.76 % |
| ROE | 8.38 % | Face Value | 10.0 ₹ | DMA 50 | 28.1 ₹ | DMA 200 | 30.8 ₹ |
| Chg in FII Hold | 0.00 % | Chg in DII Hold | -0.10 % | PAT Qtr | 740 Cr. | PAT Prev Qtr | 620 Cr. |
| RSI | 35.4 | MACD | -0.93 | Volume | 73,71,260 | Avg Vol 1Wk | 85,35,786 |
| Low price | 24.6 ₹ | High price | 38.8 ₹ | PEG Ratio | 0.32 | Debt to equity | 10.1 |
| 52w Index | 8.03 % | Qtr Profit Var | 15.8 % | EPS | 2.09 ₹ | Industry PE | 7.57 |
📊 Financials
- Revenue Growth: Moderate, PAT improved to 740 Cr from 620 Cr
- Profit Margins: EPS at 2.09 ₹, showing thin profitability
- Debt Ratios: Debt-to-equity at 10.1, very high leverage typical of banks
- Cash Flows: Supported by lending operations, but efficiency remains low
- Return Metrics: ROCE 5.76% and ROE 8.38% indicate modest efficiency
💹 Valuation
- P/E Ratio: 12.3, higher than industry average (7.57), suggesting slight overvaluation
- P/B Ratio: ~0.97 (Current Price / Book Value), fairly valued
- PEG Ratio: 0.32, indicating undervaluation relative to growth
- Intrinsic Value: Fairly valued with limited upside
🏢 Business Model & Health
- Business Model: Public sector bank, reliant on lending and deposits
- Competitive Advantage: Government backing provides stability, but limited efficiency compared to private peers
- Overall Health: Financially stable but constrained by high leverage and modest returns
🎯 Entry Zone Recommendation
- Entry Zone: Attractive near 24–26 ₹ levels (close to support)
- Long-Term Holding: Suitable for conservative investors; dividend yield (1.52%) adds stability
✅ Positive
- Quarterly PAT improved (740 Cr vs 620 Cr)
- Dividend yield of 1.52% provides investor returns
- Book value (26.5 ₹) close to current price, limiting downside risk
⚠️ Limitation
- High debt-to-equity ratio (10.1), typical of banks but risky
- Weak ROCE (5.76%) and ROE (8.38%)
- Stock trading below DMA 50 and DMA 200, showing bearish trend
📉 Company Negative News
- DII holdings decreased (-0.10%), showing reduced domestic institutional support
- Technical indicators (RSI 35.4, MACD -0.93) suggest weak momentum
📈 Company Positive News
- Quarterly PAT improved compared to previous quarter
- FII holdings stable (0.00%), no foreign outflow
🏭 Industry
- Banking industry P/E: 7.57, lower than UCOBANK’s valuation
- Sector demand driven by credit growth and government-backed stability
🔎 Conclusion
- UCOBANK is financially stable with government backing but weak efficiency metrics
- Valuation is slightly expensive compared to industry peers, though PEG suggests growth potential
- Entry near 24–26 ₹ offers value; suitable for long-term conservative investors seeking dividend stability