From mint · A Ksheerasagar · · 1m
Union Bank of India Shares Surge 300% in 5 Years
Systematix raises Union Bank target to ₹215 after Q2 profit beat.
In brief
Systematix raises Union Bank target to ₹215 after Q2 profit beat. Systematix raised Union Bank of India's target price to ₹215 following Q2 results that exceeded estimates by 5.3%. Originally reported by mint.
Systematix raises target
Systematix raised Union Bank of India's target price to ₹215 while maintaining a buy rating after quarterly profit exceeded estimates.
“We value the standalone bank at 1.1 times its FY28E adjusted book value per share of ₹ 196”
Q2 profit beat
Union Bank reported a standalone net profit of ₹5,540 crore in Q2FY27, 5.3% above estimates.
Profit drivers
Lower provisioning costs and wider margins drove profit growth, with asset quality improving.
Key metrics
Net interest margin expanded to 2.86%, gross non-performing assets fell to 2.42%.
Share performance
Shares surged 300% over five years, trading 60% below 2010 peak of ₹427.
Future outlook
Management expects interest rate hikes to support further net interest margin expansion.
Provisioning clarity
Total additional provisioning for credit loss transition is ₹5,500 crore, equivalent to 70 basis points of CET1 capital.
The takeaway
Systematix raised Union Bank of India's target price to ₹215 following Q2 results that exceeded estimates by 5.3%.
