Union Bank of India

Financial Services — Banks - Regional · NSE

₹171.68−₹1.00 (−0.58%)

DalalBaazaar Score

74 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by negative free cash flow.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Union Bank of India provides banking products and services in India. It operates in four segments: Treasury Operations, Retail Banking Operations, Corporate and Wholesale Banking, and Other Banking Operations.

IndustryBanks - Regional

SectorFinancial Services

Employees73,885

Annual revenue₹58,788 Cr

How does it make money?

Turns over ₹58,788 Cr a year. Of every ₹100 of sales, about ₹33 reaches shareholders as profit. Each of its 73,885 employees supports ₹79.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹79.6 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?

16 analysts covering the stock expect revenue to grow about 10.9% and earnings to grow about 6.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+10.9%

Est. earnings growth+6.0%

Analysts16

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +25% while net margin moved +83% 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+83%

DalalBaazaar Score

74/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 0.92 — moves roughly with the market
✓ Large-cap: deep liquidity and broad analyst coverage
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

75/ 100

Good

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

Valuation

80/ 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

6.3x

3Y Median

7.0x

40 monthly readings · mean 7.8x · range 5.3x–12.9x

Sector Median

17.0x

median of 4 sector peers

🟡Currently trading close to its 3y median of 7.0x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 63% below the peer median of 17.0x.

vs. its own history

Fair

7.0x median over 40 months · -10%

vs. sector peers

Cheap

17.0x median of 4 peers · -63%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

—

PEG

0.20

What's Good / What's Bad

🟢 What's Going Well2

Return on equity is rising
ROE has improved from 10.8% to 14.5%.
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?

Cheaper than its peers
It trades 63% 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 7.6% 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 14%✓ 15.8%
For a lender this is the cleanest single read on whether the book is being grown profitably.
2Revenue growth stays above 6% a year✓ 7.6% CAGR
Latest reported year was 16.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Valuation vs its own median of 7.0x✓ 6.3x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 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

9 good · 1 neutral · 1 weak

Market Cap

₹1.31 L Cr

Large Cap

Large, widely-covered business — typically the steadiest of the bands

P/E (Trailing)

6.3x

Cheap

Cheap against the generic band

P/B Ratio

0.94x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹27.05

Profitable

Profitable on a per-share basis

ROE

15.8%

Strong

Strong 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)

16.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

27.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.91%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹39,022 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

6.3x

Improving

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

ROA

1.3%

Weak

Assets generate little profit

Operating Margin

48.8%

Good

Healthy core-business profitability

Net Margin

40.5%

Good

Strong bottom-line conversion

Beta (vs Nifty)

0.92

Market-like

Moves roughly in line with the market

52W Range Position

50%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

173.2 / 179.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

38.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹47,132 Cr	₹55,178 Cr	₹59,340 Cr	₹58,788 Cr	+7.6%
PAT (Net Profit)	₹8,512 Cr	₹13,797 Cr	₹18,027 Cr	₹19,430 Cr	+31.7%
EPS	₹12.45	₹19.15	₹23.62	₹25.45	+26.9%
ROE	10.8%	14.1%	15.8%	14.5%	—
Total Debt	₹29,355 Cr	₹26,974 Cr	₹64,992 Cr	₹73,798 Cr	+36.0%
Free Cash Flow	₹2,990 Cr	₹18,281 Cr	-₹22,055 Cr	-₹39,022 Cr	—

🟢 Revenue has grown at 7.6% a year over 3 years.

🟢 PAT (Net Profit) has grown at 31.7% a year over 3 years.

🟢 EPS has grown at 26.9% a year over 3 years.

🟢 ROE has risen from 10.8% to 14.5% over 3 years (+3.7 pts).

🔴 Total Debt has grown at 36.0% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹2,990 Cr to -₹39,022 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹15.88 L Cr

Total Liabilities

₹14.54 L Cr

Cash & Equivalents

₹96,043 Cr

Operating Cash Flow

-₹35,798 Cr

Capex

-₹3,224 Cr

Shareholding (proxy)

Institutional Holding

15.0%

Insider Holding

74.8%

Corporate Actions

Next Earnings

19 Oct 2026

Dividend Rate

₹5

Ex-Dividend Date

03 Jul 2026

Analyst Consensus

Recommendations

11 Buy · 3 Hold · 3 Sell

Target Price (Mean)

₹197.65

+15.1% vs CMP

Target Range

₹165 – ₹225

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 mixed4 general

Best bank stock to buy amid Q2 business updates: PNB, Canara, Union Bank, Indian Bank or Bandhan? Target Prices

Livemint, 05 OctResults

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

Union Bank Raises ₹3,000 Crore via Long-Term Bond Issuance

Alice Blue, 28 SeptFunding

🟡Mixed / dependsNew funding changes the capital structure. Debt raises leverage; an equity raise dilutes existing holders.

Union Bank stock sits 16.38 percent below its 52-week high

ad-hoc-news.de, 14 Oct

Is Union Bank of India the Best Stock in Its Sector? A Look at the Numbers

Univest, 13 Oct

Union Bank Of India Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Union Bank of India holds ₹16,083 crore in debt securities as of Sep 2026

scanx.trade, 06 Oct

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 · Growth · Profitability · Valuation

MiddlingFinancial Health · Risk

Points for each in the Score ↑

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.

All 3 tripwires holding · see Key things to watch ↑