BSE:532477

Stock Analysis Report

Union Bank of India

Executive Summary

Union Bank of India provides various banking products and services.

Risk Analysis

Earnings have declined by -46.65% per year over past 5 years

Shareholders have been substantially diluted in the past year

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months



Snowflake Analysis

Adequate balance sheet and overvalued.


Similar Companies

Share Price & News

How has Union Bank of India's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 532477's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-13.0%

532477

-2.9%

IN Banks

-1.5%

IN Market


1 Year Return

-36.9%

532477

8.2%

IN Banks

10.7%

IN Market

Return vs Industry: 532477 underperformed the Indian Banks industry which returned 9.1% over the past year.

Return vs Market: 532477 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

532477IndustryMarket
7 Day-13.0%-2.9%-1.5%
30 Day-17.7%-4.4%-2.7%
90 Day-25.8%-4.3%1.3%
1 Year-36.9%-36.9%8.6%8.2%12.7%10.7%
3 Year-70.1%-70.1%10.7%9.5%22.0%15.1%
5 Year-74.3%-75.7%10.1%6.6%34.5%22.0%

Price Volatility Vs. Market

How volatile is Union Bank of India's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Union Bank of India undervalued compared to its fair value and its price relative to the market?

0.27x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 532477's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 532477's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 532477 is unprofitable, so we can't compare its PE Ratio to the Banks industry average.

PE vs Market: 532477 is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 532477's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 532477 is good value based on its PB Ratio (0.3x) compared to the IN Banks industry average (0.6x).


Next Steps

Future Growth

How is Union Bank of India forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

23.4%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Union Bank of India has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Union Bank of India performed over the past 5 years?

-46.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532477 is currently unprofitable.

Growing Profit Margin: 532477 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 532477 is unprofitable, and losses have increased over the past 5 years at a rate of -46.7% per year.

Accelerating Growth: Unable to compare 532477's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 532477 is unprofitable, making it difficult to compare its past year earnings growth to the Banks industry (25.5%).


Return on Equity

High ROE: 532477 has a negative Return on Equity (-9.83%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Union Bank of India's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 532477 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 532477's debt is not covered by short term assets (assets are 0.9x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 532477 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: 532477 has less than a year of cash runway if free cash flow continues to reduce at historical rates of -5.6% each year


Financial Institutions Analysis

Asset Level: 532477's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if 532477 has a sufficient allowance for bad loans.

Low Risk Liabilities: 532477's liabilities are made up of primarily low risk sources of funding.

Loan Level: 532477 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 532477's loans are broadly funded by customer deposits.

Level of Bad Loans: 532477 has a high level of bad loans (16.31%)


Next Steps

Dividend

What is Union Bank of India's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.6%industryaverage0.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 532477's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 532477's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 532477's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 532477's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 532477 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 532477's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure


CEO

Rajkiran Rai Gundyadka (57yo)

2.6yrs

Tenure

0

Mr. Rajkiran Rai Gundyadka has been the Chief Executive Officer and Managing Director of Union Bank of India since July 1, 2017. Mr. Rai Gundyadka has more than 3 decades of rich banking experience includi ...


Leadership Team

NamePositionTenureCompensationOwnership
Rajkiran Rai Gundyadka
MD, CEO & Director2.6yrsno data0.00020% 320.4k
Monika Kalia
GM & CFO0.6yrsno datano data
Gopal Gusain
Executive Director1.4yrsno data0.00020% 320.4k
Manes Biswal
Executive Director0.9yrsno datano data
Dineshkumar Garg
Executive Director2yrsno data0.00020% 320.4k
M. V. S. Murthy
Chief Vigilance Officer0yrsno datano data
B. Venkatesha
Chief Risk Officer0.7yrsno datano data
Mangesh Mandrekar
Assistant GM2.4yrsno datano data
Nitesh Ranjan
General Manager of Treasury Operations0yrsno datano data

1.5yrs

Average Tenure

57yo

Average Age

Experienced Management: 532477's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Rajkiran Rai Gundyadka
MD, CEO & Director2.6yrsno data0.00020% 320.4k
Gopal Gusain
Executive Director1.4yrsno data0.00020% 320.4k
Manes Biswal
Executive Director0.9yrsno datano data
Dineshkumar Garg
Executive Director2yrsno data0.00020% 320.4k
Uttam Sarkar
Shareholder Director4.7yrsno datano data
K. Ramesha
Part-Time Non-Official Director3.8yrsno datano data
Madnesh Mishra
Government Nominee Director3.6yrsno datano data
Kewal Handa
Non-Executive Chairman2.6yrsno datano data
Madhura Swaminathan
Part-Time Non-Official Director2.2yrsno datano data
Rajiv Singh
Chartered Accountant Director2yrsno datano data

2.4yrs

Average Tenure

57yo

Average Age

Experienced Board: 532477's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 64.4%.


Top Shareholders

Company Information

Union Bank of India's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Union Bank of India
  • Ticker: 532477
  • Exchange: BSE
  • Founded: 1919
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₹160.188b
  • Shares outstanding: 3.42b
  • Website: https://www.unionbankofindia.co.in

Number of Employees


Location

  • Union Bank of India
  • Union Bank Bhavan
  • 239, Vidhan Bhavan Marg
  • Mumbai
  • Maharashtra
  • 400021
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532477BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 2002
UNIONBANKNSEI (National Stock Exchange of India)YesEquity SharesININRSep 2002

Biography

Union Bank of India provides various banking products and services. It operates through four segments: Treasury, Retail, Corporate/Wholesale, and Other Banking Operations. The company offers savings and current accounts; term and recurring deposits; and demat and online trading accounts. It also provides retail loans, including home, vehicle, education, and personal loans; loans against property; and loans for medical practitioners, pensioners, and government employees, as well as products and schemes for micro, small, and medium enterprises. In addition, the company offers mutual funds, life and general insurance products, and tax saving deposits; government saving schemes, tax collection services, pension products, and departmentalized ministries accounts; short term, long term, and other credit for agricultural/SSI/tertiary sectors; and safe deposit locker and cheque collection services. Further, it provides merchant banking services; corporate loans comprising trade finance, working capital, lines of credit, project financing, and channel finance; debt structuring/restructuring, loan syndication, structured finance, mergers and acquisition advisory, and private equity services; cash management, ECGC cover, and foreign exchange services, as well as derivatives; export and import finance services; NRI banking services; and treasury and other products, and remittance services. Additionally, the company offers app, Internet, self-service, ATM, and SMS banking services; point of sale terminal and immediate payment services; and combo, debit, credit, gift, prepaid, and payroll cards. As of March 31, 2019, it operated 4,288 branches in India; 4 overseas branches at Antwerp, Sydney, Hong Kong, and Dubai; and 6,650 ATMs and 5,586 micro ATMs. The company was founded in 1919 and is headquartered in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 12:39
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.