Shares of state-run UCO Bank jumped more than 5 per cent in Thursday’s trade, extending their gains for the second consecutive session. The stock surged 5.11 per cent to hit a day high of Rs 25.70 over its previous close of Rs 24.45. At today’s high price of Rs 25.70, the stock has declined 32.63 per cent from its 52-week high of Rs 38.15, hit on December 16 last year. That said, UCO Bank has surged 123.49 per cent in the past six months.
UCO Bank’s net profit jumped 110 per cent to Rs 652.97 crore in the third quarter of the current fiscal (Q3 FY23) against Rs 310.39 crore in the corresponding quarter a year ago. The net Interest Income (NII) in Q3 FY23 rose to Rs 1,951.87 crore compared to Rs 1,762.61 crore same period a year ago, clocking a year-on-year (YoY) growth of 10.74 per cent. Non-performing assets (NPAs) fell to Rs 2,406.90 crore in Q3 FY23 from Rs 3,333.59 crore in Q3 FY22.
Resistance on the counter could be seen at Rs 27, followed by Rs 28-30 levels, technical analysts suggested.
Rajesh Bhosale, Technical Analyst at Angel One, said, “The trend on the counter remains negative and the next key support is placed around Rs 22-21.70 levels. On the flip side, Rs 28-30 is a key hurdle.”
Ganesh Dongre, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, “Investors can wait for some more time to enter this stock. No fresh buy is recommended at CMP (current market price).”
AR Ramachandran from Tips2trades said, “UCO Bank looks bearish with strong resistance at Rs 27 on the daily charts. A daily close below Rs 23 could lead to a lower target of Rs 20.5 in the coming days.”
The stock was last seen trading higher than 100-day and 200-day moving averages but lower than 5-day, 20- and 50-day moving averages. The counter’s 14-day relative strength index (RSI) came at 39.59. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-equity (P/E) ratio of 18.35. The earnings per share (EPS) of the firm came at 1.33, lower than the P/E ratio.
The scrip has a one-year beta of 0.68, indicating high volatility. Turnover on the counter stood at Rs 5.85 crore, commanding a market capitalisation (m-cap) of Rs 30,667.03 crore.
Meanwhile, Indian equity benchmarks traded lower today amid volatile trade, dragged by consumer durables and financials.
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