UNIONBANK - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.4
| Stock Code | UNIONBANK | Market Cap | 1,31,464 Cr. | Current Price | 172 ₹ | High / Low | 205 ₹ |
| Stock P/E | 7.16 | Book Value | 165 ₹ | Dividend Yield | 2.76 % | 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 | 38.8 | MACD | -2.06 | Volume | 99,51,909 | Avg Vol 1Wk | 1,10,49,905 |
| Low price | 112 ₹ | High price | 205 ₹ | PEG Ratio | 0.14 | Debt to equity | 10.3 |
| 52w Index | 64.4 % | Qtr Profit Var | 8.97 % | EPS | 24.1 ₹ | Industry PE | 7.34 |
📊 UNIONBANK shows moderate-to-strong potential for swing trading. Fundamentals are decent with EPS (24.1 ₹), ROE (17.1%), and ROCE (6.72%). The current price (172 ₹) is slightly below the 50 DMA (179 ₹) but above the 200 DMA (157 ₹), indicating short-term weakness but long-term support. Technical indicators are mixed: RSI at 38.8 suggests oversold conditions, while MACD (-2.06) signals mild bearishness. Valuation is attractive with a P/E of 7.16 compared to industry PE of 7.34, and PEG ratio (0.14) suggests undervaluation relative to growth. Quarterly PAT improved from 4,249 Cr. to 5,017 Cr., showing operational strength. Debt-to-equity is high at 10.3, typical for banks but a risk factor.
✅ Optimal Entry Price: Around 168–172 ₹ (near support levels).
🚪 Exit Strategy: If already holding, consider exiting near 178–182 ₹ (50 DMA resistance) unless strong breakout occurs.
🌟 Positive
- EPS of 24.1 ₹ indicates profitability.
- ROE (17.1%) reflects strong efficiency for a PSU bank.
- Quarterly PAT improved from 4,249 Cr. to 5,017 Cr.
- Dividend yield of 2.76% adds investor appeal.
- FII holdings increased by 0.28% and DII holdings by 0.21%, showing institutional support.
⚠️ Limitation
- Stock trades below 50 DMA, signaling short-term weakness.
- RSI and MACD indicate bearish momentum.
- High debt-to-equity ratio (10.3) raises financial risk, though typical for banks.
- ROCE (6.72%) reflects modest efficiency.
📰 Company Negative News
- Stock corrected from its high of 205 ₹.
- High leverage remains a structural risk.
📈 Company Positive News
- Quarterly PAT growth shows operational improvement.
- Institutional inflows (FII +0.28%, DII +0.21%) reflect investor confidence.
- PEG ratio of 0.14 suggests undervaluation relative to growth.
🏭 Industry
- Industry PE is 7.34, close to UNIONBANK’s 7.16, suggesting fair valuation.
- Banking sector outlook remains positive, supported by credit growth and government reforms, though asset quality risks persist.
🔎 Conclusion
UNIONBANK is a moderately strong candidate for swing trading. Fundamentals are fair, and valuation is attractive, but technical indicators show short-term weakness. Traders may enter near 168–172 ₹ with a short-term target of 178–182 ₹. Risk management is essential due to high leverage and bearish momentum, but strong PAT growth and institutional support provide confidence for potential upside.