UNIONBANK - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.0
| Stock Code | UNIONBANK | Market Cap | 1,34,637 Cr. | Current Price | 176 ₹ | High / Low | 205 ₹ |
| Stock P/E | 7.20 | Book Value | 168 ₹ | Dividend Yield | 2.84 % | ROCE | 6.31 % |
| ROE | 15.5 % | Face Value | 10.0 ₹ | DMA 50 | 170 ₹ | DMA 200 | 163 ₹ |
| Chg in FII Hold | 1.23 % | Chg in DII Hold | -0.40 % | PAT Qtr | 5,316 Cr. | PAT Prev Qtr | 5,017 Cr. |
| RSI | 61.4 | MACD | 1.18 | Volume | 1,49,46,924 | Avg Vol 1Wk | 1,19,75,479 |
| Low price | 125 ₹ | High price | 205 ₹ | PEG Ratio | 0.24 | Debt to equity | 10.8 |
| 52w Index | 63.7 % | Qtr Profit Var | 6.64 % | EPS | 24.5 ₹ | Industry PE | 8.59 |
📈 Optimal Entry Price: 170–175 ₹ (near 50 DMA support)
📉 Exit Strategy: If already holding, consider exiting near 190–195 ₹ (short-term resistance) or cut losses if price falls below 168 ₹.
Positive
- 📊 EPS at 24.5 ₹ supports valuation strength.
- 📈 PAT improved (5,017 Cr. → 5,316 Cr.), showing earnings growth.
- 💰 Dividend yield of 2.84% provides steady shareholder returns.
- 📊 RSI at 61.4 reflects healthy momentum.
- 📈 MACD positive at 1.18, confirming bullish crossover.
- 📊 FII holdings increased (+1.23%), showing foreign investor confidence.
- 📉 PEG ratio at 0.24 suggests attractive valuation relative to growth.
Limitation
- ⚠️ High debt-to-equity ratio (10.8) indicates significant leverage risk.
- 📉 ROCE (6.31%) remains modest compared to peers.
- 📊 Current price below 52-week high (205 ₹), showing resistance overhead.
- 📉 DII holdings decreased (-0.40%), showing reduced domestic support.
Company Negative News
- ❌ Decline in domestic institutional investor confidence.
- ⚠️ High leverage compared to industry peers.
Company Positive News
- ✅ Quarterly profit growth (+6.64%) shows operational improvement.
- 📈 Foreign institutional investors increasing stake.
- 📊 Strong 52-week performance (+63.7%).
Industry
- 🌐 Industry PE at 8.59 is slightly higher than UNIONBANK’s PE (7.20), suggesting undervaluation.
- 📊 Public sector banking sector remains resilient with long-term demand drivers.
Conclusion
⚖️ UNIONBANK is a strong swing trade candidate with attractive valuation, improving profitability, and foreign investor support. Entry near 170–175 ₹ offers favorable risk-reward, with exit near 190–195 ₹. Stop-loss should be maintained around 168 ₹ due to high leverage and modest efficiency ratios.
This analysis frames UNIONBANK as an undervalued but leverage-heavy swing candidate. Would you like me to extend this into a peer benchmarking overlay comparing it with Punjab National Bank and Canara Bank to evaluate relative strength in the public sector banking space?