As of July 9, 2025, Union Bank shares are trading around ₹144, down ~4% pre-open (₹144.05 bid / ₹144.15 ask), within a ₹141.5–148 range.
- 52‑Week Range: ₹100.8–158.65
- Market Cap: ~₹1.15 lakh crore groww.in
- P/E: ~6.4×; P/B: ~1.01× groww.in+1economictimes.indiatimes.com+1
- Dividend Yield: ≈ 3.1% icicidirect.com+9screener.in+9groww.in+9
📈 What’s Fueling the Moves
- Earnings Surge:
- Q4 profit jumped over 50% YoY to ₹4,985 cr, boosted by strong treasury gains timesofindia.indiatimes.com+2stockanalysis.com+2economictimes.indiatimes.com+2.
- YoY business growth ~5%, with domestic retail advances up 25% and total business crossing ₹22.1 lakh cr tipranks.com+1financialexpress.com+1.
- Macro-Interest Outlook:
- Bank flagged that NIMs could soften if RBI cuts rates—investors are watching closely alphaspread.com+9m.economictimes.com+9timesofindia.indiatimes.com+9timesofindia.indiatimes.com.
- Sector Rebound:
- PSU bank index is up ~17% in FY26, and Union Bank (+17% YTD) is riding the recovery wave m.economictimes.com.
🔍 Key Insights
- Trades at a bargain valuation (6–7× P/E, ~1× P/B), typical for PSU lenders.
- Strong ROE (~16%) and 5‑year profit growth (~50% CAGR) reflect solid performance .
- Healthy dividend flow, with ~22 payouts historically and 3% yield investing.com+2screener.in+2economictimes.indiatimes.com+2.
- Upward momentum after Q4 beat, but margin pressure from potential rate cuts could weigh.
⚠️ Risks & Considerations
- Interest rate sensitivity: RBI cuts may compress margins—a key risk to watch.
- Credit growth slowdown: Any signs of retail or corporate lending weakens bank earnings.
- Broader PSU volatility: Though PSU banks are rallying, they remain vulnerable to economic slowdowns.
✅ Final Take
Union Bank offers a compelling value play with undervalued multiples, strong earnings, and dividend support. But cautiousness is warranted until RBI policy and net interest margins settle. It’s a strong pick if you believe in margin stability and PSU banking revival.
❓ FAQs – Union Bank Share Price
Q1. Why did Union Bank fall to ₹144?
A pre-open dip of ~4% on July 9 reflects profit-taking after strong Q4 results and investor apprehension about potential RBI rate cuts.
Q2. Should I buy at ~6× P/E?
It looks cheap relative to peers, but evaluate risks around NIMs and credit growth before entering.
Q3. How much dividend does it pay?
Dividend yield is ~3.1%, with a history of payouts around 4–5% .
Q4. What are analyst targets?
Analysts estimate a 12-month target of ₹148–160, with a buy rating—but margin outlook is crucial investing.com+1economictimes.indiatimes.com+1.
⚠️ Disclaimer
This is for informational purposes only and does not constitute financial advice. Please consult a SEBI-registered advisor before making any investment decisions.
