Shares of Union Bank of India surged after three sessions of fall today. The banking stock zoomed 6.66% to Rs 67.3 against the previous close of Rs 63.10 on BSE. ┬аCurrently, the stock is trading 3.9% away from the 52-week high of Rs 69.2. Union Bank of India shares are trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. ┬аThe stock of the lender has gained 42.26% in a year and risen 53.57% since the beginning of this year. In a month, the stock has surged 55%. ┬аTotal 19.80 lakh shares of the firm changed hands amounting to a turnover of Rs 13.08 crore on BSE.┬а
Market cap of Union Bank of India surged to Rs 45,621 crore in the afternoon session today. The large cap stock surged to a 52-week high of Rs 69.20 on ┬аNovember 11, 2022 and a 52 week low of Rs 33.55 on May 12, 2022. ┬а
In the second quarter of the current fiscal, net profit rose 21% to 1,848 crore in the quarter ended September 2022 from Rs 1,526 crore a year ago, on the back of strong loan growth despite a fall in other income.┬а
Total advances rose 22% year-on-year with a 15% growth in retail, agriculture and MSME segments and a 22% rise in corporate loans led by segments like infrastructure, iron and steel, chemicals and NBFCs. ┬аNet interest income (NII) rose 22% to Rs 8,305 crore . ┬а
After the Q2 earnings, ┬аMotilal Oswal turned bullish on the stock with a target price of Rs 65, an 18% upside to the market price of Rs 55 on November 6, 2022. ┬а
тАЬLoan growth has picked up well and has been broad based with focus to remain on further credit growth improvement. We estimate loans to grow at 12-13% over FY23-24 with an RoA/RoE at 0.8%/13.9%, respectively, by FY24. We maintain our BUY rating with a target price of Rs 65 (premised on 0.6x FY24E ABV),тАЭ said the financial services firm.
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