1. Union Bank of India is a 10 rupee face value public sector bank.
2. Book Value of the Union Bank of India is 51.27 so at the Current price of 36.60, it is a value buy.
3. Net Sale par share is 100.61 which is near 2.75 times higher than the current market price.
4. If you are a new reader and have not familiar with my research terms then please first visit this link for research terms:- Mahesh Kaushik Research Terms.
5. Nifty bank P/E is 24.42 but Union Bank of India traded at 8.57 P/E which is 3 times lower than index P/E.
6. Base price of the Union Bank of India is 52.58 which is near its book value.
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| Last 3 Year Chart of Union Bank of India |
7. For Base price calculation download the last 3 years price history and graph from this link:-
8. Union bank Profits and EPS:-
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| Union Bank of India Profit and EPS of Last 4 Quarter |
9. At present Union bank does not give any dividends since 2016 but due to continuing profits and increasing EPS, I hope the worst time is over and stock may start dividend payment again.
10. In August 2019 Union Bank of India has been selected by the Government of India as Anchor Bank for the amalgamation of Andhra Bank, Corporation Bank into Union Bank of India. The amalgamation took place on 1st April 2020.
11. Year high=45 Year low =23 So year high/ low ratio is below 2.
12. I recommended buying it with my STP method and the STP price for 16 July 2021 to 31 July 2021 is 39.45, In the STP method buy our target is 25% plus.
13. For more details of the STP method watch this video:-https://youtu.be/gREpTaV50bA
14. Link of my Earlier STP recommendations:-
https://docs.google.com/spreadsheets/d/1ZWtF5z718RkLoz7QMIwtsOa4oXpP0dnHCVOlcSqFyaQ/edit?usp=sharing
15. Link of my latest SIP book:- https://amzn.to/3kIRir9
16. Disclaimer:- This is not an advisory service to buy or sell. The contents of “this research report” are only for educational purposes. No liability is accepted for any content in “this research report”. The author is neither a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index, or any other financial instrument at any time. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions. Please read the full disclaimer at the bottom of my blog.
17.Discloser:- I Mahesh Chander Kaushik author of this research report is an existing research analyst and passed NISM certification for research analysts. I have also registered under SEBI(RESEARCH ANALYSTS) REGULATIONS, 2014 ( SEBI Registration Number INH 100000908 ) hereby disclose my financial interest in the subject company and the nature of such financial interest:- 1 Me and my associates or relatives have not to hold any share of Union Bank of India Ltd so my personal interest is not included in this stock. 2. Me and my associates or relatives have not any actual/beneficial ownership of one percent or more securities of the subject company (Union Bank of India Ltd). 3. Me and my associates or relatives have not any other material conflict of interest at the time of publication of the research report. 4. Me and my associates or relatives have not received any type of compensation from the subject company(Union Bank of India Ltd) in the past twelve months. 5. I am not served as an officer, director, or employee of the subject company ( Union Bank of India Ltd). 6. I have been not engaged in the market-making activity for the subject company (Union Bank of India Ltd).