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UNIONBANK - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | UNIONBANK | Market Cap | 1,35,779 Cr. | Current Price | 178 ₹ | High / Low | 205 ₹ |
| Stock P/E | 7.40 | Book Value | 165 ₹ | Dividend Yield | 2.67 % | ROCE | 6.72 % |
| ROE | 17.1 % | Face Value | 10.0 ₹ | DMA 50 | 179 ₹ | DMA 200 | 157 ₹ |
| Chg in FII Hold | 0.28 % | Chg in DII Hold | 0.21 % | PAT Qtr | 5,017 Cr. | PAT Prev Qtr | 4,249 Cr. |
| RSI | 43.9 | MACD | -1.38 | Volume | 1,08,03,224 | Avg Vol 1Wk | 1,19,58,019 |
| Low price | 112 ₹ | High price | 205 ₹ | PEG Ratio | 0.15 | Debt to equity | 10.3 |
| 52w Index | 70.5 % | Qtr Profit Var | 8.97 % | EPS | 24.1 ₹ | Industry PE | 7.57 |
📊 Financials
- Revenue Growth: Moderate, PAT improved to 5,017 Cr from 4,249 Cr
- Profit Margins: EPS at 24.1 ₹, showing decent profitability
- Debt Ratios: Debt-to-equity at 10.3, very high leverage typical of banks
- Cash Flows: Supported by lending operations, though efficiency remains modest
- Return Metrics: ROCE 6.72% and ROE 17.1% indicate moderate efficiency
💹 Valuation
- P/E Ratio: 7.40, slightly lower than industry average (7.57), suggesting fair valuation
- P/B Ratio: ~1.08 (Current Price / Book Value), fairly valued
- PEG Ratio: 0.15, indicating undervaluation relative to growth
- Intrinsic Value: Fairly valued with potential upside
🏢 Business Model & Health
- Business Model: Public sector bank, reliant on lending, deposits, and government-backed operations
- Competitive Advantage: Government support ensures stability, wide branch network
- Overall Health: Financially stable with improving profits, though leverage remains high
🎯 Entry Zone Recommendation
- Entry Zone: Attractive near 170–180 ₹ levels (close to DMA 50)
- Long-Term Holding: Suitable for conservative investors; dividend yield (2.67%) adds stability
✅ Positive
- Quarterly PAT improved (5,017 Cr vs 4,249 Cr)
- Dividend yield of 2.67% provides investor returns
- EPS of 24.1 ₹ reflects profitability
⚠️ Limitation
- High debt-to-equity ratio (10.3), typical of banks but risky
- ROCE (6.72%) remains weak compared to peers
- Stock trading close to resistance levels (205 ₹ high)
📉 Company Negative News
- Technical indicators (RSI 43.9, MACD -1.38) suggest weak momentum
📈 Company Positive News
- FII holdings increased (+0.28%), showing foreign investor confidence
- DII holdings increased (+0.21%), showing domestic institutional support
🏭 Industry
- Banking industry P/E: 7.57, slightly higher than UNIONBANK’s valuation
- Sector demand driven by credit growth and government-backed stability
🔎 Conclusion
- UNIONBANK is financially stable with government backing and improving profitability
- Valuation is fair compared to industry peers, with PEG suggesting growth potential
- Entry near 170–180 ₹ offers value; suitable for long-term conservative investors seeking dividend stability