ScoreWhy is Union Bank of India ?
1
Strong lending practices with low Gross NPA ratio of 2.82%
2
Strong Long Term Fundamental Strength with a 45.11% CAGR growth in Net Profits
3
Healthy long term growth as Net profit has grown by an annual rate of 45.11%
4
Positive results in Mar 26
- GROSS NPA(Q) Lowest at 2.82%
- PBT LESS OI(Q) At Rs 1,488.17 cr has Grown at 54.4% (vs previous 4Q average)
- NET NPA(Q) Lowest at 0.48%
5
With ROA of 1.2, it has a Very Attractive valuation with a 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 31.26%, its profits have risen by 4% ; the PEG ratio of the company is 1.7
Real-Time Research ReportHow 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)
32.38%
0.91
34.22%
Sensex
-4.04%
-0.30
13.40%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Net Interest Income Growth (5y)
9.34%
Net Profit Growth (5y)
45.11%
Advance to Deposit
71.80%
Capital Adequacy Ratio (Tier 1)
14.79%
Gross NPA (latest)
2.82%
Gross NPA (avg)
5.96%
Coverage Ratio (avg)
78.77%
Cost to Income (avg)
46.58%
Net Interest Margin (avg)
2.83%
Operating Profit to Assets (avg)
4.01%
ROA (avg)
1.38%
Net Debt to Equity (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
7
Price to Book Value
0.99
PEG Ratio
1.73
Dividend Yield
2.81%
ROE (Latest)
14.54%
ROA (Latest)
1.19%
Net NPA to Book Value
3.94
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
GROSS NPA(Q)
Lowest at 2.82%
PBT LESS OI(Q)
At Rs 1,488.17 cr has Grown at 54.4% (vs previous 4Q average
NET NPA(Q)
Lowest at 0.48%
PBDIT(Q)
Highest at Rs 2,543.15 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 9.62%
PAT(Q)
Highest at Rs 5,315.76 cr.
EPS(Q)
Highest at Rs 6.96
-1What is not working for the Company
NON-OPERATING INCOME(Q)
is 78.43 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Union Bank (I)
Gross NPA - Quarterly
Lowest at 2.82% and Fallen
each quarter in the last five quartersMOJO Watch
Proportion of stressed loans given by the bank are falling
Gross NPA (%)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 1,488.17 cr has Grown at 54.4% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 963.81 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Net NPA - Quarterly
Lowest at 0.48% and Fallen
each quarter in the last five quartersMOJO Watch
Proportion of stressed loans given by the bank are falling
Net NPA (%)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 2,543.15 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 9.62%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit After Tax (PAT) - Quarterly
Highest at Rs 5,315.76 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 6.96
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
CAR - Quarterly
Highest at 18.10%
in the last five quartersMOJO Watch
The Bank's capital base vs its risk assets is improving. However, the bank may not be taking adequate risk in its lending book.
CAR (%)
Here's what is not working for Union Bank (I)
Non Operating Income - Quarterly
is 78.43 % 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
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