UCO Bank

Financial Services — Banks - Regional · NSE

₹23.79+₹0.23 (+0.98%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by negative free cash flow.

In simple words: Reasonable but unspectacular business quality, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

UCO Bank provides various banking and financial services in India and internationally. The company's deposit products include current accounts, saving accounts, fixed deposits, recurring deposits, accounts in foreign currency, and fee collection accounts.

IndustryBanks - Regional

SectorFinancial Services

Employees20,984

Annual revenue₹12,329 Cr

How does it make money?

Turns over ₹12,329 Cr a year. Of every ₹100 of sales, about ₹22 reaches shareholders as profit. Each of its 20,984 employees supports ₹58.8 lakh of revenue a year, the signature of a people-led business.

Net margin22.5%

Revenue / employee₹58.8 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.

HDFC BANK LTDP/E 15.9x · ROE 13.8%

ICICI BANK LTD.P/E 18.1x · ROE 16.5%

KOTAK MAHINDRA BANK LTDP/E 21.9x · ROE 11.2%

AXIS BANK LIMITEDP/E 14.5x · ROE 13.4%

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.

ROE8.9%

Peer median ROE13.8%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +25% while net margin moved +21% 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+25%

Margin effect+21%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 7.8% — barely ahead of inflation
• Profit CAGR of 14.9%

Quality vs. Valuation

Company Quality

66/ 100

Good

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

Valuation

88/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

10.0x

3Y Median

23.6x

40 monthly readings · mean 23.0x · range 10.5x–37.5x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 58% below its 3y median of 23.6x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 41% below the peer median of 17.0x.

vs. its own history

Cheap

23.6x median over 40 months · -58%

vs. sector peers

Cheap

17.0x median of 4 peers · -41%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

10.0x

P/B

0.86x

EV/EBITDA

—

PEG

0.67

Dividend Yield

1.85%

What's Good / What's Bad

🟢 What's Going Well2

Valuation below its historical average
At 10.0x the stock trades 58% below its own median of 23.6x.
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?

Priced below its own history
The stock trades 58% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 41% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Growth barely outpaces inflation
Revenue compounding at 7.8% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.

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

1Return on equity stays above 8%✓ 8.9%
For a lender this is the cleanest single read on whether the book is being grown profitably.
2Revenue growth stays above 6% a year✓ 7.8% CAGR
Latest reported year was 4.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Valuation vs its own median of 23.6x✓ 10.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 9 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 5 neutral · 1 weak

Market Cap

₹29,832 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

10.0x

Cheap

Cheap against the generic band

P/B Ratio

0.86x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹2.38

Profitable

Profitable on a per-share basis

ROE

8.9%

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

0.55x

Low

Conservative leverage

Revenue Growth (YoY)

4.9%

Modest

Modest growth

Profit Growth (YoY)

28.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.85%

Modest

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

Free Cash Flow

-₹11,178 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹23.79

P/E (Forward)

17.0x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

ROA

0.8%

Weak

Assets generate little profit

Operating Margin

35.9%

Good

Healthy core-business profitability

Net Margin

22.6%

Good

Strong bottom-line conversion

Beta (vs Nifty)

0.73

Defensive

Steadier than the market

52W Range Position

13%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

23.5 / 24.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

48.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹9,851 Cr	₹10,808 Cr	₹11,412 Cr	₹12,329 Cr	+7.8%
PAT (Net Profit)	₹1,826 Cr	₹1,672 Cr	₹2,445 Cr	₹2,768 Cr	+14.9%
EPS	₹1.53	₹1.4	₹2.04	₹2.21	+13.0%
ROE	7.1%	6.1%	7.9%	8.3%	—
Total Debt	₹20,501 Cr	₹21,179 Cr	₹23,687 Cr	₹18,310 Cr	-3.7%
Free Cash Flow	₹2,695 Cr	₹648 Cr	₹1,541 Cr	-₹11,178 Cr	—

🟢 Revenue has grown at 7.8% a year over 3 years.

🟢 PAT (Net Profit) has grown at 14.9% a year over 3 years.

🟢 EPS has grown at 13.0% a year over 3 years.

🟢 ROE has risen from 7.1% to 8.3% over 3 years (+1.2 pts).

🟢 Total Debt has shrunk at 3.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹2,695 Cr to -₹11,178 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3.96 L Cr

Total Liabilities

₹3.63 L Cr

Total Debt

₹18,310 Cr

Cash & Equivalents

₹25,069 Cr

Operating Cash Flow

-₹10,584 Cr

Capex

-₹593 Cr

Shareholding (proxy)

Institutional Holding

2.6%

Insider Holding

91.0%

Corporate Actions

Dividend Rate

₹0.44

Ex-Dividend Date

04 May 2026

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

2 positive2 mixed2 general

UCO Bank Share Price live: market cap, ratios and context

Univest, 05 Oct

UCO Bank Profit Rises 27% to Rs 786 Cr in July-September

HDFC Sky, 15 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Q2 FY27 Bank Results: Indian Bank Profit Rises 15% to ₹3,462 Cr; KVB Jumps 37%, UCO Bank 27%

NiftyTrader, 15 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Best 3 stocks to buy under ₹100: Equitas SFB, UCO Bank, Suzlon by Mehul Kothari of Anand Rathi — Target, stop-loss

Livemint, 17 Oct

Indian Bank, UCO Bank lead Q2 profit growth as treasury income slumps

The Economic Times, 15 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Indian Bank, South Indian Bank gain up to 5% from day's low post Q2 results

Business Standard, 15 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

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

🟢Business QualityStrong18/20

🟡Financial HealthAdequate12.4/20

🟡GrowthModest10.4/20

🟡ProfitabilityModerate8.9/15

🟢ValuationAttractive13.2/15

🟡RiskModerate6.4/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

This thesis breaks if

✓Return on equity stays above 8%8.9%
✓Revenue growth stays above 6% a year7.8% CAGR
✓Valuation vs its own median of 23.6x10.0x today