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Last Updated on: 24 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532477 | NSE: UNIONBANK

Union Bank of India: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 9:21 pm

Market Cap 87,909 Cr.
Current Price 115
High / Low172/106
Stock P/E5.73
Book Value 128
Dividend Yield3.13 %
ROCE6.55 %
ROE15.6 %
Face Value 10.0
PEG Ratio0.17

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Union Bank of India

Competitors of Union Bank of India

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Union Bank of India 87,909 Cr. 115172/1065.73 1283.13 %6.55 %15.6 % 10.0
UCO Bank 50,023 Cr. 41.970.7/36.822.9 22.90.67 %5.34 %6.22 % 10.0
State Bank of India (SBI) 7,28,200 Cr. 816912/5599.51 4651.68 %6.16 %17.3 % 1.00
Punjab National Bank 1,14,699 Cr. 99.8143/75.67.93 1001.50 %5.46 %8.54 % 2.00
Punjab & Sind Bank 31,828 Cr. 47.077.5/40.247.2 22.90.43 %5.59 %3.88 % 10.0
Industry Average125,820.67 Cr189.1412.66148.891.96%5.88%12.90%7.25

All Competitor Stocks of Union Bank of India

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Revenue17,27916,85117,07217,02818,25619,77820,96622,16323,61324,73225,52126,51026,527
Interest10,1279,8819,76210,40910,59811,38412,24213,81014,66415,49816,23616,96617,004
Expenses8,7139,4107,9466,9408,4429,5988,81710,0417,9787,9628,0129,3659,367
Financing Profit-1,561-2,441-635-321-784-1,204-93-1,6889711,2711,273179156
Financing Margin %-9%-14%-4%-2%-4%-6%-0%-8%4%5%5%1%1%
Other Income3,2674,7713,1612,3262,9483,6973,6695,6014,2094,2214,2815,1024,799
Depreciation0000000000000
Profit before tax1,7062,3302,5262,0052,1652,4933,5763,9125,1805,4925,5545,2814,954
Tax %35%36%58%23%28%26%37%28%37%35%35%37%27%
Net Profit1,1201,5111,0771,5571,5831,8532,2642,8123,2723,5723,6253,3283,642
EPS in Rs1.642.211.582.282.322.713.314.114.794.824.894.364.77
Gross NPA %
Net NPA %

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Revenue25,16929,39432,16432,31632,81732,95234,31437,47969,31168,23081,163100,376103,289
Interest17,57521,46723,64023,89423,77623,47123,89625,83744,11240,17848,03363,36465,703
Expenses7,2688,8299,49810,34913,87121,18119,01921,16636,27032,26436,15532,42034,706
Financing Profit325-902-973-1,928-4,830-11,700-8,601-9,523-11,071-4,213-3,0244,5912,880
Financing Margin %1%-3%-3%-6%-15%-36%-25%-25%-16%-6%-4%5%3%
Other Income2,8683,1413,9573,9345,4305,4625,0425,78914,30713,52415,91517,81318,402
Depreciation1561982252492413683744179087457458960
Profit before tax3,0372,0402,7591,758359-6,607-3,933-4,1512,3278,56612,14721,50821,282
Tax %30%18%36%24%-58%-21%-25%-27%-22%39%31%36%
Net Profit2,1461,6871,7711,347573-5,212-2,922-3,1212,8635,2658,51213,79714,167
EPS in Rs36.1426.5927.6919.738.33-44.61-16.58-9.124.477.7012.4518.0718.84
Dividend Payout %22%15%22%10%0%0%0%0%0%25%24%20%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-21.39%4.98%-23.94%-57.46%-1009.60%43.94%-6.81%191.73%83.90%61.67%62.09%
Change in YoY Net Profit Growth (%)0.00%26.37%-28.92%-33.52%-952.14%1053.54%-50.75%198.54%-107.84%-22.23%0.42%

Union Bank of India has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:13%
5 Years:24%
3 Years:13%
TTM:15%
Compounded Profit Growth
10 Years:23%
5 Years:46%
3 Years:69%
TTM:29%
Stock Price CAGR
10 Years:-6%
5 Years:15%
3 Years:36%
1 Year:8%
Return on Equity
10 Years:5%
5 Years:9%
3 Years:12%
Last Year:16%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital5976306366876871,1691,7633,4236,4076,8356,8357,634
Reserves16,72218,00419,26322,36123,40624,08325,07330,56758,33164,02671,96989,964
Borrowings287,589327,078352,618374,754418,420455,969460,780505,150977,5761,085,6131,163,0591,251,568
Other Liabilities8,0039,30011,0489,56213,1679,90010,96416,36940,06337,29246,49552,831
Total Liabilities312,912355,013383,566407,365455,681491,120498,581555,5091,082,3771,193,7661,288,3571,401,996
Fixed Assets2,4832,6212,6903,9393,8963,8243,7434,7347,3037,1718,8269,224
CWIP1324132134445463372236
Investments81,80894,63685,81890,573113,441125,485128,391154,251339,059351,839343,727343,953
Other Assets228,608257,753295,053312,840338,322361,777366,402396,470735,952834,718935,7821,048,783
Total Assets312,912355,013383,566407,365455,681491,120498,581555,5091,082,3771,193,7661,288,3571,401,996

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-4,2452,570-3,56781-6,6246,097-7,778-7720,52736,3396,05619,930
Cash from Investing Activity +-343-363-318-9-280-315-297-4-601-558-2,561-1,394
Cash from Financing Activity +5,0964,9023,168-210,19410,7921,758201-18,861-786-10,654-11,489
Net Cash Flow5077,109-718703,28916,574-6,3171211,06634,995-7,1597,047

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-280.00-319.00-343.00-364.00-405.00-434.00-441.00-484.00-941.0031.0035.0031.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
ROE %13%9%9%6%2%-21%-11%-10%6%8%11%16%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters83.49%83.49%83.49%83.49%83.49%83.49%83.49%83.49%76.99%76.99%74.76%74.76%
FIIs1.49%1.19%1.18%1.13%1.43%1.62%1.66%1.46%2.89%3.97%6.75%7.37%
DIIs6.72%7.02%7.05%6.90%7.05%8.39%8.27%7.88%12.69%12.28%12.24%11.38%
Public8.29%8.30%8.27%8.47%8.02%6.49%6.57%7.17%7.42%6.76%6.25%6.50%
No. of Shareholders6,90,8097,39,1437,61,8097,98,2147,81,5547,80,2087,83,5507,75,7738,65,2518,74,3099,14,9409,84,229

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Mid-Cap Opportunities Fund - Regular Plan95,552,6412.261336.314,372,5662024-11-21564.83%
Nippon India Growth Fund19,400,0001.11271.3114,372,5662024-11-2134.98%
Nippon India ETF Nifty PSU Bank BeES14,372,5669.1820114,372,5662024-11-210%
Nippon India Large Cap Fund13,902,3660.91194.4214,372,5662024-11-21-3.27%
Nippon India ELSS Tax Saver Fund8,930,0000.88124.8914,372,5662024-11-21-37.87%
Kotak Nifty PSU Bank ETF8,928,1089.18124.8614,372,5662024-11-21-37.88%
Sundaram Mid Cap Fund8,415,5031.16117.6914,372,5662024-11-21-41.45%
Sundaram Mid Cap Fund - Institutional Plan8,415,5031.16117.6914,372,5662024-11-21-41.45%
Aditya Birla Sun Life Multi-Cap Fund6,438,2091.7990.0414,372,5662024-11-21-55.2%
Nippon India Small Cap Fund5,500,0000.1776.9214,372,5662024-11-21-61.73%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
Face Value10.0010.0010.0010.0010.00
Basic EPS (Rs.)19.1512.457.774.47-13.45
Diluted EPS (Rs.)19.1512.457.774.47-13.45
Cash EPS (Rs.)19.1313.428.715.83-7.67
Book Value[Excl.RevalReserv]/Share (Rs.)120.32106.1796.5693.2489.72
Book Value[Incl.RevalReserv]/Share (Rs.)127.72115.15103.53100.8899.00
Operating Revenue / Share (Rs.)131.49118.7599.83108.18109.50
Net Profit / Share (Rs.)17.9612.337.624.41-8.88
Net Profit After MI / Share (Rs.)18.0712.457.704.47-9.12
Net Profit Margin (%)13.6510.387.634.08-8.11
Net Profit After MI And SOA Nargin (%)13.7410.487.714.13-8.32
Operating Profit Margin (%)-4.08-9.22-12.18-15.97-23.55
Return On Assets (%)0.980.660.440.26-0.56
Return On Equity / Networth (%)15.0211.727.974.79-10.16
Net Interest Margin (X)2.632.572.342.322.09
Cost To Income (%)48.3447.8847.3850.5146.97
Interest Income / Total Assets (%)7.156.295.716.406.74
Non-Interest Income / Total Assets (%)1.271.231.131.281.04
Operating Profit / Total Assets (%)-0.29-0.58-0.69-1.02-1.58
Operating Expenses / Total Assets (%)1.891.821.651.821.47
Interest Expenses / Total Assets (%)4.513.723.364.074.65
Enterprise Value (Rs.Cr.)1315907.761158348.651066085.71961609.75494975.89
EV Per Net Sales (X)13.1114.2715.6213.8713.21
Price To Book Value (X)1.280.620.400.360.32
Price To Sales (X)1.170.550.380.310.26
Retention Ratios (%)80.0875.9175.33100.00100.00
Earnings Yield (X)0.110.180.190.13-0.31

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Union Bank of India as of November 24, 2024 is: 118.00

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 24, 2024, Union Bank of India is Undervalued by 2.61% compared to the current share price 115.00

Intrinsic Value of Union Bank of India as of November 24, 2024 is: 157.34

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 24, 2024, Union Bank of India is Undervalued by 36.82% compared to the current share price 115.00

Last 5 Year EPS CAGR: 33.34%

*Investments are subject to market risks

Strength and Weakness

Unable to fetch valid data for stock valuation.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Union Bank of India:
    1. Net Profit Margin: 13.65%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 0% (Industry Average ROCE: 5.88%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 0% (Industry Average ROE: 12.9%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 0
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 5.73 (Industry average Stock P/E: 12.66)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Union Bank of India is a Public Limited Listed company incorporated on 11/11/1919 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is U99999MH1919PTC000615 and registration number is 000615. Currently company belongs to the Industry of Finance - Banks - Public Sector. Company’s Total Operating Revenue is Rs. 67943.95 Cr. and Equity Capital is Rs. 6834.75 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance - Banks - Public SectorUnion Bank Bhavan, Mumbai Maharashtra 400021investorservices@unionbankofindia.bank
http://www.unionbankofindia.co.in
Management
NamePosition Held
Mr. Srinivasan VaradarajanNon Executive Chairman
Ms. A ManimekhalaiManaging Director & CEO
Mr. S RamasubramanianExecutive Director
Mr. Nitesh RanjanExecutive Director
Mr. Sanjay RudraExecutive Director
Mr. Pankaj DwivediExecutive Director
Dr. Jayadev MadugulaShareholder Director
Mrs. Priti Jay RaoShareholder Director
Mr. Laxman S UpparPart Time Non Official Director
Mr. Suraj SrivastavaPart Time Non Official Director
Mr. Sameer ShuklaGovernment Nominee Director
Mr. Prakash BaliarsinghNominee Director

FAQ

What is the latest intrinsic value of Union Bank of India?

The latest intrinsic value of Union Bank of India as on 24 November 2024 is ₹118.00, which is 2.61% higher than the current market price of ₹115.00.

What is the Market Cap of Union Bank of India?

The Market Cap of Union Bank of India is 87,909 Cr..

What is the current Stock Price of Union Bank of India as on 24 November 2024?

The current stock price of Union Bank of India as on 24 November 2024 is 115.

What is the High / Low of Union Bank of India stocks in FY 2024?

In FY 2024, the High / Low of Union Bank of India stocks is 172/106.

What is the Stock P/E of Union Bank of India?

The Stock P/E of Union Bank of India is 5.73.

What is the Book Value of Union Bank of India?

The Book Value of Union Bank of India is 128.

What is the Dividend Yield of Union Bank of India?

The Dividend Yield of Union Bank of India is 3.13 %.

What is the ROCE of Union Bank of India?

The ROCE of Union Bank of India is 6.55 %.

What is the ROE of Union Bank of India?

The ROE of Union Bank of India is 15.6 %.

What is the Face Value of Union Bank of India?

The Face Value of Union Bank of India is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Union Bank of India. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE