A prominent private sector bank in India, City Union Bank has a significant presence in the south of the nation. The bank has amassed a devoted customer base over the years and has consistently produced strong financial results. The share price of the bank, which indicates how the market views its prospects for the future, is one important metric of its performance. The share price of City Union Bank, its past performance, and what the future may hold for investors thinking about buying the bank’s shares are all topics we will cover in this article.
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CITY UNION BANK IN RECENT NEWS
- City Union Bank’s shares plummeted by nearly 10% after the release of its Q4 financial results.
- City Union Bank intends to generate funds up to Rs 500 crore through a Qualified Institutional Placement (QIP).
- City Union Bank recorded a 4% increase in Profit After Tax (PAT) to reach Rs 218 crore. In the fiscal year 2022-23, the bank’s PAT showed substantial growth of 23%, reaching Rs 937 crore compared to Rs 760 crore in the previous year, accompanied by a 14% rise in total income from Rs 4,864 crore to Rs 5,525 crore.
- The Reserve Bank of India (RBI) has granted approval for the reappointment of N Kamakodi as the Managing Director (MD) and Chief Executive Officer (CEO) of City Union Bank.
HOW TO BUY CITY UNION BANK SHARES?
Investors have the option to buy Union Bank of India’s shares through both online and offline stockbrokers.
Some of the online platforms to buy Union Bank’s shares are:
- ICICI direct
CITY UNION BANK SHARE PRICE TARGET 2023
|CITY UNION BANK SHARE PRICE TARGET 2023||Maximum Price||Minimum Price|
City Union Bank’s share price is expected to show a bullish trend with an uptrend in the upcoming months. The bank’s shares are expected to experience a growth percentage of up to 75% by the end of December 2023. Although there may be some fluctuations throughout the year, the overall trajectory is expected to be positive.
Investors who are considering investing in City Union Bank shares may want to take note of this trend and consider the potential for long-term gains. However, it is important to note that the stock market can be unpredictable, and any investment decision should be based on thorough research and analysis of the bank’s financial performance, market trends, and other relevant factors.
CITY UNION BANK SHARE PRICE TARGET 2024
|CITY UNION BANK SHARE PRICE TARGET 2024||Maximum Price||Minimum Price|
According to the table above, City Union Bank’s shares are expected to continue their positive trend in 2024. The bank’s shares are predicted to reach a maximum target of ₹265.04 and a minimum target of ₹137.34. It is worth noting that the share price is likely to experience some fluctuations throughout the year, as is typical in the stock market.
However, the overall trend is expected to be positive, providing investors with the potential for long-term gains. Investors considering investing in City Union Bank shares in 2024 should conduct their own research to gain a comprehensive understanding of the bank’s financial performance and market trends to make informed investment decisions.
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CITY UNION BANK SHARE PRICE TARGET 2025
|CITY UNION BANK SHARE PRICE TARGET 2025||Maximum Price||Minimum Price|
Union Bank’s shares are expected to continue their positive trend in 2025. The bank’s shares are predicted to reach a maximum target of ₹321.49 and a minimum target of ₹186.56. While there may be some fluctuations in the share price throughout the year, the overall trend is expected to be positive. Investors who are considering investing in City Union Bank shares may want to take note of this trend and consider the potential for long-term gains.
However, it is essential to conduct thorough research and analysis of the bank’s financial performance, market trends, and other relevant factors before making any investment decision. By doing so, investors can make informed decisions that align with their investment goals and risk tolerance.
CITY UNION BANK SHARE PRICE TARGET 2026 TO 2030
|CITY UNION BANK SHARE PRICE TARGET BY||Maximum Price||Minimum Price|
Looking at the table above, City Union Bank’s shares are expected to continue their upward trend in the coming years. The bank’s shares are predicted to reach a maximum target of ₹787.66 in 2030, indicating a significant potential for gains over the next few years. Meanwhile, the minimum target of ₹133.90 in 2027 suggests that there may be some fluctuations in the share price, but the overall trend is expected to be positive.
Investors who are willing to take on higher risks may want to consider investing in City Union Bank shares with the potential for substantial gains in the long term. However, as with any investment, it is essential to conduct thorough research and analysis of the bank’s financial performance, market trends, and other relevant factors to make informed investment decisions. By doing so, investors can increase their chances of achieving their investment goals while managing their risk exposure.
FINANCIAL STRENGTH OF UNION BANK SHARE PRICE TARGET (2019 TO 2023)
|Metric||Mar 2019||Mar 2020||Mar 2021||Mar 2022||Mar 2023|
|Revenue (Rs Cr)||3,767||4,169||4,135||4,105||4,714|
|Interest (Rs Cr)||2,156||2,493||2,305||2,188||2,552|
|Expenses + (Rs Cr)||1,140||1,690||1,738||1,605||1,796|
|Financing Profit (Rs Cr)||472||-15||92||311||367|
|Financing Margin %||13%||-0%||2%||8%||8%|
|Other Income + (Rs Cr)||514||680||689||759||810|
|Depreciation (Rs Cr)||62||79||87||85||0|
|Profit before tax (Rs Cr)||925||586||693||985||1,177|
|Net Profit + (Rs Cr)||683||476||593||760||937|
|EPS in Rs||9.30||6.46||8.02||10.28||12.66|
|Dividend Payout %||5%||8%||6%||10%||8%|
1. Revenue showed a fluctuating trend, reaching Rs 3,767 Cr, followed by an increase to Rs 4,169 Cr in 2020, but slightly declined to Rs 4,105 Cr in 2022, and then significantly rose to Rs 4,714 Cr in 2023.
2. Interest expenses exhibited varying levels, reaching Rs 2,493 Cr in 2020 but then reduced to Rs 2,188 Cr in 2022, and increased to Rs 2,552 Cr in 2023.
3. Financing Profit faced fluctuations with a dip of Rs -15 Cr in 2020, followed by a gradual increase, reaching Rs 367 Cr in 2023.
4. Financing Margin % fluctuated, showing a concerning negative value of -0% in 2020 but improved and remained stable at 8% for both 2022 and 2023.
5. Other Income displayed an upward trend, reaching Rs 810 Cr in 2023, indicating diversification of income sources.
6. Depreciation expenses remained consistent, except for a notable drop to Rs 0 Cr in 2023.
7. Profit before tax increased from Rs 925 Cr in 2019 to Rs 1,177 Cr in 2023, indicating steady growth.
8. Effective Tax % varied over the years, with the highest at 26% in 2019 and the lowest at 14% in 2021.
9. Net Profit surged from Rs 476 Cr in 2020 to Rs 937 Cr in 2023, demonstrating significant growth.
10. Earnings Per Share (EPS) increased steadily from Rs 6.46 in 2020 to Rs 12.66 in 2023, indicating enhanced shareholder value.
Over the five-year period from March 2019 to March 2023, City Union Bank’s financial performance displayed both challenges and growth opportunities. The bank’s revenue fluctuated but ultimately showed an upward trend, reaching Rs 4,714 Cr in 2023. While interest expenses varied, the bank managed to improve its financing profit, highlighting potential areas of success. Notably, the financing margin improved to a stable 8% in 2022 and 2023. Other income diversified revenue streams, contributing to the bank’s overall growth. The bank witnessed a remarkable increase in net profit, rising from Rs 476 Cr in 2020 to Rs 937 Cr in 2023, driving positive investor sentiment with a rising EPS of Rs 12.66 in 2023.
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CITY UNION BANK SHARE PRICE TARGET BY EXPERTS:
- Motilal Oswal recommends purchasing Union Bank of India with a target price of Rs 100.(21/1/23)
- ICICI Direct recommends buying Union Bank of India with a target price of Rs 141.(29/5/23)
- Kotak Institutional Equities recommends buying Union Bank of India with a target price of Rs150.(29/5/23)
The maximum share price target of City Union Bank in 2025 is Rs. ₹321.49
The maximum share price target of City Union Bank in 2029 is Rs. 707.29
The maximum share price target of City Union Bank in 2030 is Rs. 787.66.
POINTS TO CONSIDER WHILE INVESTING IN CITY UNION BANK SHARE:
- The company’s interest coverage ratio is low, indicating potential challenges in meeting interest payment obligations.
- Over the past five years, the company has experienced poor sales growth, with only a 6.74% increase in revenue.
- The return on equity (ROE) for the company over the last three years stands at 12.5%, which is relatively low compared to industry standards.
- The presence of contingent liabilities worth Rs. 9,705 Cr adds to the company’s potential financial risks.
- There is a possibility that the company is capitalizing the interest cost, which may impact its financial reporting and profitability measures.
CONCLUSION: CITY UNION BANK
Based on the financial statement of City Union Bank for the last five years, there has been a steady growth in its total income, with a positive growth rate of 0.50% in FY 2022. Similarly, the bank’s Profit After Tax (PAT) has been increasing over the years, with a growth rate of 28.23% in FY 2022. The bank has also maintained a healthy Net Interest Margin and Net Profit Margin. However, the bank’s Provisions & Contingencies have been fluctuating, with a negative growth rate of -6.27% in FY 2022.
Based on the recommendations from different financial institutions and our analysis, Union Bank of India’s share price appears to be positive and attractive for investors. The target prices provided by Motilal Oswal, ICICI Direct, and Kotak Institutional Equities indicate a potential upside in the stock’s value. Investors should consider these recommendations along with their own research and market conditions before making any investment decisions. As of May 2023, the bank’s shares are expected to have a target range of Rs 100 to Rs 150, suggesting a favorable outlook for potential growth. However, it’s important to note that share prices are subject to market fluctuations and individual risk tolerance should be taken into account.
Considering the overall financial performance of the bank, the increasing PAT and revenue growth indicate that the bank is performing well. However, it is important to note that investing in the stock market involves various risks and uncertainties, and past performance may not necessarily guarantee future returns. It is advisable to conduct thorough research, analyze the market trends, and consult with a financial advisor before making any investment decisions.
Suhani Bhat, a student of Hansraj college, is a finance writer who takes deep interest in stock market, mutual funds, and other financial news. She writes for multiple finance blogs, including Financegradeup.com. Other than English, she also speaks Hindi.