Strong Rally and Market Outperformance
On 19 Feb 2026, Union Bank of India’s stock surged to Rs.195.75, surpassing its previous 52-week high and reflecting an impressive gain over the past year. The stock has delivered a remarkable 68.54% return over the last 12 months, substantially outperforming the Sensex’s 9.88% rise during the same period. This outperformance is further highlighted by the stock’s consistent upward trajectory, having gained 8.51% over the last four consecutive trading sessions.
In comparison to its sector peers, Union Bank of India outperformed the Public Sector Bank sector by 1.06% on the day it hit the new high. The stock is trading comfortably above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling strong technical momentum and investor confidence in its current valuation.
Financial Strength and Quality Metrics
Union Bank of India’s recent price surge is underpinned by solid fundamental metrics. The bank boasts a provision coverage ratio of 76.68%, reflecting prudent risk management and strong provisioning practices. Its gross non-performing assets (NPA) ratio stands at a low 3.06%, while net NPA is even more favourable at 0.51%, indicating effective asset quality control.
Credit deposit ratio, a key indicator of lending activity, is robust at 81.03% as per the half-yearly data, demonstrating the bank’s active role in credit expansion. The bank’s net profit growth has been exceptional, with a compound annual growth rate (CAGR) of 63.27%, highlighting sustained profitability improvements over the long term.
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Valuation and Market Position
The bank’s return on assets (ROA) stands at a healthy 1.2%, complemented by a price-to-book value ratio of 1.2, indicating an attractive valuation relative to its peers. The PEG ratio of 0.6 further suggests that the stock is reasonably priced considering its earnings growth potential.
Union Bank of India holds a market cap grade of 1, reflecting its status as a large-cap entity with significant market presence. Institutional investors hold a substantial 20.04% stake in the company, signalling confidence from well-resourced market participants who typically conduct thorough fundamental analysis.
Comparative Market Context
While Union Bank of India has been on a strong upward trajectory, broader market conditions have been more volatile. The Sensex, after opening 235.57 points higher, reversed sharply to close down by 559.07 points at 83,410.75, a decline of 0.39%. Despite this, the Sensex remains within 3.29% of its own 52-week high of 86,159.02. Notably, the Sensex is trading below its 50-day moving average, though the 50-day average remains above the 200-day average, indicating mixed technical signals at the index level.
Against this backdrop, Union Bank of India’s ability to reach a fresh 52-week high and maintain gains above all major moving averages highlights its relative strength and resilience in a fluctuating market environment.
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Long-Term Performance and Market Ranking
Union Bank of India’s performance over the past year has been exceptional, with a 68.54% return compared to the Sensex’s 9.88%. This strong showing is consistent with its ranking among the top 1% of companies rated by MarketsMojo across a universe of 4,000 stocks. The bank holds a rank of 4 among all large-cap stocks and 26 across the entire market, underscoring its strong fundamental and market credentials.
The bank’s mojo score of 81.0 and an upgraded mojo grade from Buy to Strong Buy as of 2 Feb 2026 further reflect its improved quality and market standing. This upgrade is supported by the bank’s consistent profit growth, healthy asset quality, and attractive valuation metrics.
Over the last three years, Union Bank of India has outperformed the BSE500 index, demonstrating sustained market-beating returns in both the near and long term. Its 52-week low price of Rs.106.80 contrasts sharply with the current high of Rs.195.75, illustrating the significant value appreciation investors have witnessed over the period.
Summary of Key Metrics
To summarise, Union Bank of India’s key financial and market metrics include:
- New 52-week high price: Rs.195.75
- One-year return: 68.54%
- Provision coverage ratio: 76.68%
- Gross NPA: 3.06%
- Net NPA: 0.51%
- Credit deposit ratio: 81.03%
- Net profit CAGR: 63.27%
- ROA: 1.2%
- Price to book value: 1.2
- PEG ratio: 0.6
- Institutional holdings: 20.04%
- Mojo score: 81.0 (Strong Buy)
These figures collectively illustrate the bank’s strong fundamentals, effective risk management, and favourable valuation, which have contributed to its recent price milestone.
Conclusion
Union Bank of India’s ascent to a new 52-week high of Rs.195.75 marks a noteworthy achievement in its market journey. Supported by robust financial metrics, consistent profit growth, and strong technical momentum, the stock has demonstrated resilience and strength amid broader market fluctuations. Its upgraded mojo grade and high rankings further attest to its quality and market standing within the public sector banking industry.
As the bank continues to maintain its position above key moving averages and deliver market-beating returns, this milestone reflects both its operational strength and investor confidence in its current valuation.
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