City Union Bank Limited

Financial Services — Banks - Regional · NSE

₹226.95+₹2.93 (+1.31%)

DalalBaazaar Score

73 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

The 60-second version of City Union Bank Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

City Union Bank Limited provides various banking products and services in India. It operates through four segments: Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations.

IndustryBanks - Regional

SectorFinancial Services

Employees8,894

Annual revenue₹3,865 Cr

How does it make money?

Turns over ₹3,865 Cr a year. Of every ₹100 of sales, about ₹34 reaches shareholders as profit. Each of its 8,894 employees supports ₹43.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹43.5 lakh

Who are its competitors?

The closest listed comparisons in its industry are HDFC BANK LTD, ICICI BANK LTD., KOTAK MAHINDRA BANK LTD, AXIS BANK LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE13.8%

What is the outlook?

22 analysts covering the stock expect revenue to grow about 17.7% and earnings to grow about 18.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+17.7%

Est. earnings growth+18.2%

Analysts22

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +30% while net margin moved +9% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+30%

Margin effect+9%

DalalBaazaar Score

73/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 16.1x is within a normal band
✗ P/E is 21% above its own historical median of 13.3x — expensive by its own standards

Quality vs. Valuation

Company Quality

79/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

50/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

16.1x

3Y Median

13.3x

40 monthly readings · mean 14.3x · range 9.8x–20.0x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 21% above its 3y median of 13.3x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟡Against its sector it is priced broadly in line with the peer median of 17.0x.

vs. its own history

Expensive

13.3x median over 40 months · +21%

vs. sector peers

Fair

17.0x median of 4 peers · -5%

vs. generic bands

Fair

15x–35x

EV/EBITDA

—

PEG

1.31

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 21% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Return on equity stays above 11%✓ 12.6%
For a lender this is the cleanest single read on whether the book is being grown profitably.
2Revenue growth stays above 7% a year✓ 9.1% CAGR
Latest reported year was 23.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Valuation vs its own median of 13.3x✗ 16.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

9 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 6 neutral · 0 weak

Market Cap

₹22,486 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

16.1x

Fair

Fairly valued against the generic band

P/B Ratio

2.13x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹14.13

Profitable

Profitable on a per-share basis

ROE

12.6%

Moderate

Moderate capital efficiency

ROCE

Not meaningful

N/A for lenders

Banks and NBFCs don't report capital employed the way other businesses do

Debt/Equity

0.46x

Low

Conservative leverage

Revenue Growth (YoY)

23.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

25.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.88%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹450 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

11.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

51.0%

Good

Healthy core-business profitability

Net Margin

37.8%

Good

Strong bottom-line conversion

Beta (vs Nifty)

0.37

Defensive

Steadier than the market

52W Range Position

74%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

226.3 / 224.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

51.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,973 Cr	₹2,865 Cr	₹3,214 Cr	₹3,865 Cr	+9.1%
PAT (Net Profit)	₹937 Cr	₹1,016 Cr	₹1,124 Cr	₹1,326 Cr	+12.3%
EPS	₹9.43	₹10.22	₹11.3	₹13.37	+12.4%
ROE	12.6%	12.1%	11.9%	12.6%	—
Total Debt	₹4,688 Cr	₹3,372 Cr	₹1,790 Cr	₹4,827 Cr	+1.0%
Free Cash Flow	₹625 Cr	₹268 Cr	₹931 Cr	₹450 Cr	-10.4%

🟢 Revenue has grown at 9.1% a year over 3 years.

🟢 PAT (Net Profit) has grown at 12.3% a year over 3 years.

🟢 EPS has grown at 12.4% a year over 3 years.

🟡 ROE has held roughly flat at 12.6% over 3 years.

🟡 Total Debt has been broadly flat over 3 years (1.0% a year).

🔴 Free Cash Flow has shrunk at 10.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹97,024 Cr

Total Liabilities

₹86,460 Cr

Cash & Equivalents

₹8,927 Cr

Operating Cash Flow

₹802 Cr

Capex

-₹353 Cr

Shareholding (proxy)

Institutional Holding

52.1%

Insider Holding

8.0%

Corporate Actions

Next Earnings

02 Nov 2026

Dividend Rate

₹2

Ex-Dividend Date

31 Jul 2026

Analyst Consensus

Recommendations

18 Buy · 2 Hold · 3 Sell

Target Price (Mean)

₹257.46

+13.4% vs CMP

Target Range

₹190 – ₹300

Peer Comparison

Company	P/E	ROE
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
KOTAK MAHINDRA BANK LTD	21.9x	11.2%
AXIS BANK LIMITED	14.5x	13.4%

Recent News

1 mixed5 general

City Union Bank (NSEI:CUB) Stock Forecast & Analyst Predictions

Simply Wall Street, 12 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

City Union Bank GST demand reduced to ₹208.91 crore

scanx.trade, 14 Oct

Trade Spotlight: How should you trade City Union Bank, NTPC Green Energy, Cyient, Persistent Systems,...

Moneycontrol.com, 12 Oct

City Union Bank (CUB.NS) Drops 3.05% to ₹222.24; Support at ₹211.13 in Focus - RSI Oversold Picks

siam.in, 30 Aug

City Union Bank - Hexaware Technologies among 6 stocks showing RSI trending up

The Economic Times, 12 Oct

City Union Bank “Crashed” 23% Today — Here’s Why It’s Only a Bonus Adjustment

NiftyTrader, 12 Jun

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Risk

MiddlingValuation

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

1 of 3 tripwires tripped — Valuation vs its own median of 13.3x · see Key things to watch ↑