Union Bank of India (UNIONBANK) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Bank of Maha

Bank Of Baroda

Union Bank (I)

Bank Of India

Canara Bank

Indian Bank

SBI

Punjab Natl.Bank

Central Bank

UCO Bank

I O B

Why is Union Bank of India ?

Strong Provisioning Practices with a Provision Coverage Ratio of 76.68%

Strong Long Term Fundamental Strength with a 63.27% CAGR growth in Net Profits

Healthy long term growth as Net profit has grown by an annual rate of 63.27%

GROSS NPA(Q) Lowest at 3.06%
CREDIT DEPOSIT RATIO(HY) Highest at 81.03%
NET NPA(Q) Lowest at 0.51%

With ROA of 1.2, it has a Attractive valuation with a 1.1 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 64.48%, its profits have risen by 12.6% ; the PEG ratio of the company is 0.6

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Union Bank (I) should be less than 10%
Overall Portfolio exposure to Public Sector Bank should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Public Sector Bank)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Union Bank (I) for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Union Bank (I)

64.48%

1.94

33.31%

Sensex

8.49%

0.76

11.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Net Interest Income Growth (5y)

12.65%

Net Profit Growth (5y)

63.27%

Advance to Deposit

73.83%

Capital Adequacy Ratio (Tier 1)

13.41%

Gross NPA (latest)

3.06%

Gross NPA (avg)

6.26%

Coverage Ratio (avg)

76.68%

Cost to Income (avg)

46.65%

Net Interest Margin (avg)

2.76%

Operating Profit to Assets (avg)

3.89%

ROA (avg)

0.88%

Net Debt to Equity (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Price to Book Value

1.10

PEG Ratio

0.60

Dividend Yield

2.58%

ROE (Latest)

14.57%

ROA (Latest)

1.24%

Net NPA to Book Value

4.05

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

GROSS NPA(Q)

Lowest at 3.06%

CREDIT DEPOSIT RATIO(HY)

Highest at 81.03%

NET NPA(Q)

Lowest at 0.51%

PBT LESS OI(Q)

Highest at Rs 2,078.32 cr.

PAT(Q)

Highest at Rs 5,016.77 cr.

EPS(Q)

Highest at Rs 6.57

-2What is not working for the Company

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 43,236.98 cr

NON-OPERATING INCOME(Q)

is 68.60 % of Profit Before Tax (PBT

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Here's what is working for Union Bank (I)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 2,078.32 cr has Grown at 155.5% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 813.28 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Gross NPA - Quarterly

Lowest at 3.06% and Fallen

each quarter in the last five quarters

MOJO Watch

Proportion of stressed loans given by the bank are falling

Gross NPA (%)

Net NPA - Quarterly

Lowest at 0.51% and Fallen

each quarter in the last five quarters

MOJO Watch

Proportion of stressed loans given by the bank are falling

Net NPA (%)

Credit Deposit Ratio - Half Yearly

Highest at 81.03% and Grown

in the last four periods

MOJO Watch

Bank has been creating proportionately higher loans against its deposits, thereby creating higher revenue generating assets

Credit Deposit Ratio (%)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 2,078.32 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 5,016.77 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 6.57

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Union Bank (I)

Non Operating Income - Quarterly

is 68.60 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 43,236.98 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

CAR - Quarterly

Lowest at 16.49%

in the last five quarters

MOJO Watch

The Bank's capital base vs its risk assets is deteriorating.

CAR (%)