City Union Bank Ltd.
NSE: CUBCity Union Bank Ltd.: A 30-second snapshot
City Union Bank (CUB) trades at ₹260.35, up 45% over 12 months and above both its 50-DMA (₹259.14) and 200-DMA (₹249.06). Q4 FY26 net profit rose 25% YoY, and the board approved a 1:3 bonus issue and 200% dividend, generating positive news flow. The trailing PE of 14.26 is the lowest among the six banking peers compared, and the quality score ranks first in that peer set.
P/E
14.3
Forward P/E
10.3
ROE
+13.2%
Debt / Equity
—
Profit Margin
+37.6%
Div. Yield
+0.8%
5Y ROE > 15%
0/5
5Y FCF > 0
4/5
Quality
74/100
News
8 headlines · 6 positive · 0 negative
City Union Bank Seeks Shareholder Approval for 1:3 Bonus Issue and Director Appointment - scanx.trade
scanx.trade
1:3 Bonus Share: Bank Stock Jumps 8% After Strong Q4 Results and 200% Dividend - Trade Brains
Trade Brains
City Union Bank reports 25% rise in profit to Rs 360 crore - The New Indian Express
The New Indian Express
City Union Bank reports 25% profit rise in Q4FY26, approves bonus issue - BusinessLine
BusinessLine
Buy City Union Bank; target of Rs 310: Prabhudas Lilladher - Moneycontrol.com
Moneycontrol.com
Recent context
- ·City Union Bank reported Q4 FY26 net profit of approximately ₹360 crore, a 25% YoY increase, prompting the board to approve a 1:3 bonus share issue and a 200% dividend — the stock rose approximately 8% on the announcement.
- ·Shareholders are being asked to approve both the bonus issue and a new director appointment at an upcoming general meeting, per an April 2026 regulatory filing.
- ·Prabhudas Lilladher issued a note on CUB with a stated rating of Buy and a price target of ₹310, as reported by Moneycontrol on 29 April 2026 — this is the named broker's view and not a recommendation by this platform.
Strengths
- +Lowest trailing PE among six banking peers at 14.26, with a forward PE of 10.30 — a significant compression relative to peers such as Bajaj Finance (30.7x) and HDFC Life (70x).
- +Revenue and earnings growth compounding at 23.6% and 25.1% respectively over five years, with Q4 FY26 profit up 25% YoY to approximately ₹360 crore.
- +Profit margin of 37.62% is high in absolute terms, and FCF was positive in 4 of the available measured years.
- +Quality score of 70 ranks first among the six peers in the comparison set, above Axis Bank (50), Bajaj Finance (51), HDFC Bank (47), and substantially above HDFC Life (20) and Bajaj Finserv (23).
Weaknesses
- −ROE of 13.24% has not exceeded 15% in any measured year (roeYearsAbove15 = 0); among the six peers, CUB ranks fourth on this metric, behind Bajaj Finance (17.91%), HDFC Bank (13.82%), and Bajaj Finserv (14.6%).
- −Earnings consistency score of 47 out of 100 signals moderate persistence; the business has generated positive FCF in 4 of measured years, meaning at least one year of negative FCF is in the record.
- −Price has retreated 10.87% over the past 3 months and sits 19.67% below the 52-week high, even as the longer 12-month return remains strongly positive.
- −Analyst mean rating of 1.5 across 22 analysts (1–5 scale, lower = more constructive) reflects coverage concentration near the constructive end, but 22 analysts also means any rating revision carries visibility risk.
Open questions
- ?Has the 25% YoY profit growth been accompanied by a structural improvement in net interest margin and asset quality, or does it reflect one-time items or a favourable credit cycle?
- ?The bonus issue increases share count by 33% — how has CUB historically managed book value per share and capital allocation following past bonus or rights events?
- ?ROE has remained below 15% across all measured years despite a 25% earnings CAGR; what would need to change in the business model — loan mix, fee income, or cost ratios — for returns on equity to move into the mid-to-high teens?
- ?The stock is 19.67% below its 52-week high after a strong annual run; is the 3-month pullback a function of the broad banking sector, or are there CUB-specific factors such as NPA trends or management guidance that explain the divergence?
Peer comparison: Banking
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| CUB | City Union Bank Ltd.You're viewing | 14.3 | +13.2% | 70 |
| Industry avg | across 5 peers | 32.6 | +14.2% | 38 |
| BAJFINANCE | Bajaj Finance Ltd. | 30.7 | +17.9% | 51 |
| AXISBANK | Axis Bank Ltd. | 15.1 | +13.2% | 50 |
| HDFCBANK | HDFC Bank Ltd. | 17.0 | +13.8% | 47 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 30.0 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 70.0 | +11.3% | 20 |
Technical state
Current price
₹260.35
SMA 50
₹259.14
SMA 200
₹249.06
RSI (14)
47.0 (neutral)
From 52w high
-19.7%
1Y return
+45.0%
3M return
-10.9%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumROE of 13.24% has not exceeded 15% in any of the measured years (roeYearsAbove15 = 0), placing CUB fourth among six banking peers on return on equity despite a profitMargin of 37.62%.
- mediumEarnings consistency score is 47 out of 100 and FCF was positive in 4 of the available years; the combination indicates moderate but not high quality of earnings persistence.
- lowPrice is down 10.87% over the past 3 months and 19.67% off the 52-week high, even as it remains above both the 50-DMA (₹259.14) and 200-DMA (₹249.06).
- lowDebt-to-equity is null (typical for bank balance sheets where leverage ratios are the relevant metric); no D/E-based leverage analysis is possible. Peer 1Y price-change data is unavailable, limiting relative price-performance comparison.
Cross-section contradictions
- Q4 FY26 profit grew 25% YoY and the stock gained 45% over 12 months, yet ROE has remained below 15% in every measured year and the consistency score is only 47 — suggesting the earnings growth has not yet translated into structural return improvement.
- News sentiment is strongly positive (6 positive, 0 negative of 8 articles) and a 1:3 bonus issue was approved, but the stock has pulled back 10.87% over the past 3 months, indicating the market absorbed the news before or during its release.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 12 May 2026 · rotates through NIFTY 500 every ~5 days