UCOBANK - Swing Trade Analysis

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

Swing Trade Rating: 3.4

📊 Analysis Summary

UCOBANK is a low-priced PSU bank stock showing signs of technical weakness but backed by stable earnings and attractive valuation. While not a strong momentum play, its oversold condition and low P/E make it a moderate-risk swing trade candidate, especially for short-term mean reversion.

✅ Positives for Swing Trade Setup

P/E: 15.4 vs Industry PE: 7.49

Slightly premium, but still low — valuation remains attractive.

PEG Ratio: 0.38

Indicates undervaluation relative to earnings growth.

Quarterly PAT Growth: +23.8%

Consistent earnings — PAT rose from ₹640 Cr. to ₹666 Cr.

RSI: 35.5

Near oversold zone — potential for technical bounce.

MACD: –0.32

Bearish but flattening — watch for crossover.

EPS: ₹1.97

Reasonable earnings for a low-priced stock.

Volume: 54.8L

Strong liquidity — easy to enter/exit positions.

⚠️ Risks to Watch

ROCE: 5.76% & ROE: 8.50%

Weak profitability — below sector leaders.

Trading Below DMA 50 & 200

Technically bearish — trend not supportive.

FII & DII Holding ↓

Institutional sentiment is negative.

Debt to Equity: 10.4

High leverage typical for banks, but still a risk factor.

52W Index: 11.0%

Underperformance — not a momentum leader.

🎯 Optimal Entry Price

Entry Zone: ₹29.0–₹30.0

Near RSI support and recent low — wait for bullish confirmation.

🚪 Exit Strategy (If Already Holding)

Exit Target: ₹33.5–₹35.0

Near DMA 50 resistance — good level to book profits.

Stop Loss: ₹27.5

Below recent swing low — protects against breakdown.

Would you like to compare UCOBANK with other PSU banks like Bank of India or Indian Bank for stronger swing setups?

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