Strong Rally Drives Stock to New Heights
On 29 Dec 2025, City Union Bank Ltd. (Stock ID: 119922) surged to an intraday high of Rs.301, marking a significant milestone for the private sector bank. This new peak represents a 3.14% increase on the day and a remarkable 74.46% gain over the past year, substantially outperforming the Sensex’s 7.62% rise during the same period. The stock’s performance today also outpaced its sector by 3.32%, underscoring its relative strength amid a broadly negative market backdrop.
The stock’s intraday low was Rs.284.85, indicating some volatility, but the overall upward trajectory was clear as it closed near its peak. City Union Bank is currently trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling strong technical momentum and investor confidence in its recent performance.
Market Context and Comparative Performance
While the broader market, represented by the Sensex, experienced a decline of 0.41% to close at 84,695.54 points, City Union Bank’s stock demonstrated resilience. The Sensex remains 1.73% shy of its own 52-week high of 86,159.02, and is trading below its 50-day moving average, though the 50DMA itself is positioned above the 200DMA, indicating a cautiously positive medium-term trend. Against this backdrop, City Union Bank’s outperformance is particularly noteworthy.
Over the last year, the bank’s stock has nearly doubled its sector and market benchmark returns, reflecting both strong fundamentals and market recognition of its growth trajectory.
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Financial Strength Underpinning the Rally
City Union Bank’s recent price surge is supported by solid financial metrics. The bank maintains a low Gross Non-Performing Assets (NPA) ratio of 2.42%, which is among the lowest in the private sector banking segment, reflecting prudent lending practices. Its Capital Adequacy Ratio stands at a robust 20.09%, providing a strong buffer against credit and market risks.
Net profit growth has been impressive, with an annualised rate of 24.20%, and the bank has reported positive results for five consecutive quarters. The latest quarterly figures show the highest Net Interest Income (NII) at Rs.666.54 crores and operating cash flow for the year reaching Rs.1,128.30 crores, highlighting operational efficiency and strong cash generation.
Institutional Confidence and Valuation Metrics
Institutional investors hold a significant 62.71% stake in City Union Bank, indicating strong backing from entities with extensive analytical resources. This institutional interest often correlates with confidence in the company’s fundamentals and growth prospects.
However, the stock trades at a premium valuation with a Price to Book Value of 2.2 and a Price/Earnings to Growth (PEG) ratio of 1.3, reflecting expectations of continued earnings growth. The Return on Assets (ROA) is 1.4%, which, while solid, suggests the stock commands a relatively expensive valuation compared to some peers.
Long-Term and Recent Performance Highlights
City Union Bank has demonstrated market-beating performance not only in the past year but also over longer periods. It has outperformed the BSE500 index over the last three years, one year, and three months, underscoring consistent growth and resilience. The stock’s 52-week low was Rs.144, indicating a near doubling in value over the year, a testament to its strong upward momentum.
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Summary of Key Metrics
To summarise, City Union Bank Ltd. currently holds a Mojo Score of 72.0 with an upgraded Mojo Grade of Buy as of 20 Oct 2025, having previously been rated Hold. The market capitalisation grade is 3, reflecting its standing among peers. The stock’s day change today was a positive 3.12%, reinforcing its strong momentum.
The bank’s consistent profitability, strong capital position, and low asset quality risks have contributed to its sustained rally and new 52-week high. Despite trading at a premium valuation, the stock’s performance metrics and institutional backing provide a comprehensive picture of its current market standing.
Conclusion
City Union Bank Ltd.’s ascent to a new 52-week high of Rs.301 marks a significant achievement, driven by robust financial health, strong earnings growth, and positive market momentum. The stock’s outperformance relative to the Sensex and its sector highlights its resilience and strength in a challenging market environment. Trading above all major moving averages and supported by solid fundamentals, the bank’s stock continues to command attention within the private sector banking space.
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