Union Bank's shares have experienced a significant surge, doubling from their low in November last year to Rs 103.50 as of today. This increase has led to a market capitalization of Rs 76,496 crore for the bank. The shares have been trading with high volatility, as indicated by a one-year beta of 1.7 and a balanced Relative Strength Index (RSI) of 53.2.
Analysts have set optimistic target prices for Union Bank's shares. Motilal Oswal has set a target price of Rs 125, Emkay Global at Rs 105, and Progressive Shares has set a range between Rs 135 and Rs 168.
The bank's price-to-earnings (PE) ratio stands at 6.44, with a price-to-book ratio of 1.05, indicating an undervaluation against the sectoral PE of 11.10.
Union Bank demonstrated robust financial performance post a five-year consolidation period. The net standalone profit rose to Rs 3,511 crore, while non-performing assets (NPAs) fell to 1.30%. The bank also reported growth in gross advances by 9.50% year-on-year (YoY), total deposits by 9.04% YoY, and net interest income by 9.89% YoY.
Looking forward, the FY24/25E earnings estimates for Union Bank increased by 7%/8%, with an estimated return on assets (RoA) and return on equity (RoE) of 1.1% and 17.5% respectively by FY25.
In unrelated news, technology firm Infosys (NS:INFY) has requested some employees to work from the office for ten days each month.
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