Union Bank of India
Banking · NSE
52-week range
₹111 – ₹205
From 52w high
-19.1%
RSI (14)
39.5
vs SMA 50 / 200
↓ 50 · ↑ 200
Union Bank of India (UNIONBANK) trades at ₹165, a PE of 6.48 and trailing ROE of 15.71%, ranking lowest PE and second-highest ROE among the 6 Banking peers in the dataset. The stock is up 44% over 1 year but has pulled back 19.7% from its 52-week high and fell sharply following Q4FY26 results in which core income declined and provisions rose alongside a 6.6% profit increase.
- ✓PE of 6.48 is the lowest among 6 tracked Banking peers (next lowest: AXISBANK at 14.9), reflecting a significant valuation discount to the sector.
- ✓Trailing ROE of 15.71% ranks second among the 6 peers and exceeds private-sector peers HDFCBANK (13.82%), AXISBANK (13.15%), and BAJAJFINSV (14.6%).
- ✓Dividend yield of 2.86% with a declared ₹5 dividend in Q4FY26, providing income return at a time when price return has been volatile.
- ✓Quality score of 61 ranks highest among the 6 Banking peers in the dataset (next: AXISBANK 53, BAJFINANCE 51, HDFCBANK 47).
- ✗ROE persistence is thin: above 15% in only 1 of tracked years with a consistency score of 40/100, raising questions about whether the current ROE reflects a structural or cyclical position.
- ✗FCF was positive in only 2 of tracked years and the debt trend is classified as rising — for a PSU bank, sustained FCF generation and debt trajectory are key solvency indicators.
- ✗Q4FY26 results showed a rise in provisions and slippages alongside a decline in core income; the stock declined approximately 9% in a single session, per CNBC TV18 reporting.
- ✗Price is 8.2% below the 50-DMA at ₹179.77 with RSI at 38.32, and the stock is 19.7% below its 52-week high, reflecting recent downward price momentum.
- ·Q4FY26 net profit grew 6.6% YoY to ₹5,316 crore and a ₹5 per share dividend was declared, but provisions and slippages rose and core income declined, leading to an approximately 9% single-day price drop per CNBC TV18 (April 23, 2026).
- ·Analyst price targets were revised following the Q4 results per CNBC TV18, with the mean analyst rating at 2.07 across 15 analysts on a 1–5 scale (lower = more constructive).
- ·The 3-month price change is -7.26% while the 1-year change remains +44%, indicating a meaningful reversal in short-term momentum following what had been a strong year for the stock.
- ?Does the single-year spike in ROE above 15% reflect a lasting improvement in asset quality and return on advances, or is it driven by a one-off recovery cycle in the PSU banking sector?
- ?How does the rise in provisions and slippages in Q4FY26 compare to Union Bank's own 5-year provisioning history, and what does the trajectory imply for net interest margins in coming quarters?
- ?Given that the stock trades at a large discount to private-sector peers on PE, what assumptions about earnings durability or governance risk does that discount price in?
- ?If core income is under pressure and debt is on a rising trend, what metrics — credit-cost ratio, CASA ratio, gross NPA movement — would confirm or challenge the current quality score of 61?
PE
6.5
Forward PE
6.4
ROE
+15.7%
Profit margin
+35.7%
D/E
—
Dividend yield
+2.9%
Quality score
61/100
ROE 5y above 15%
1/5 yrs
FCF 5y positive
2/5 yrs
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.Analysis generated 11 May 2026.