Buy Union Bank of India, target price Rs 91: ICICI Direct

ICICI Direct has buy call on Union Bank of India with a target price of Rs 91.The current market price of Union Bank of India is Rs 82.75.Time period given by analyst is 14 days when Union Bank of India price can reach defined target. ICICI Direct recommended to keep stop loss at Rs 74.

Union Bank of India, incorporated in the year 1919, is a banking company (having a market cap of Rs 56762.58 Crore).

Union Bank of India key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest On Balances with RBI and Other Inter-Bank Funds and Interest for the year ending 31-Mar-2022.

Financials
The Bank has reported Standalone Non Performing Assets (Gross NPAs) at .00 % of total assets and Standalone Net Non Performing Assets (Net NPAs) at .00% of total assets for the quarter ending #LatestQuarterDate.

For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 23475.13 Crore, up 10.71 % from last quarter Total Income of Rs 21204.45 Crore and up 8.57 % from last year same quarter Total Income of Rs 21621.87 Crore. The bank has reported net profit after tax of Rs 1853.12 Crore in latest quarter.

Investment Rationale
The Nifty PSU Bank index is resuming uptrend after breather signalling resumption of fresh upmove. Within the midcap PSU Banks we remain constructive on Union Bank of India as it continues to remain in strong upmove and has generated a breakout above the falling supply line joining the highs of Dec22and Jan23, signalling resumption of up move and offers fresh entry opportunity.

Promoter/FII Holdings
Promoters held 83.49 per cent stake in the company as of 31-Dec-2022, while FIIs owned 1.13 per cent, DIIs 8.31 per cent.