Bank Stocks to Buy: The net profit of private sector City Union Bank NSE: CUB increased by 16 percent to Rs 253 crore in the December quarter. On an annual basis, the bank’s deposits increased by 5 percent in the third quarter of the current financial year (Q3FY24), while the net interest margin declined.
After the quarterly results, brokerage house advised to buy City Union Bank share.
City Union Bank Share Target
Brokerage has given buy advice on City Union Bank after the third quarter (Q3FY24) results. The target price for each share is also ₹234.
The stock closed at 137.50 on February 2, 2024. The stock price can be increased by more than 31 percent. The bank stock gave a negative of 13.17% in the last year.
City Union Bank Q3FY24
According to an exchange filing, City Union Bank’s interest income increased by 10 percent to Rs 1326 crore in the December quarter. It was Rs 1,206 crore in the same quarter a year ago.
City Union Bank Brokerage
The brokerage house says that there is a one-time impact on the NIM of City Union Bank, but the growth remains slow. City Union Bank Bank (CUB) reported PAT of Rs 2.5 billion (RoA of 1.5%) in 3QFY24, up 16% YoY, in line with their consensus estimates of Rs 2.6 billion/Rs 2.5 billion, respectively.
Asset quality has improved, the slippage ratio has declined from 2.1% to 1.8% QoQ, and the negative net slippage ratio has declined to 0.3% due to strong recovery and upgrades.
Credit costs for the quarter increased by 0.4% (0.5% in 2QFY24) and PCR (on-books) increased to 52% (71%, including write-offs).
About City Union Bank Ltd Company
The Kumbakonam Bank Limited, the predecessor to today’s City Union Bank, was founded as a limited liability company by twenty prominent and devoted citizens of Kumbakonam on October 31, 1904.
From the Common Wealth Bank Limited, the bank acquired the assets and liabilities in 1957. The City Forward Bank Limited merged with The Union Bank Limited. The Kumbakonam City Union Bank Limited is the new name of the Kumbakonam Bank Limited.
City Union Bank Limited was the new name of the Bank in December 1987, in line with its national image. City Union Bank has now a strong, nationwide network of over 750 computerized branches. There are also more than 1654 ATMs.
Fundamental Analysis of City Union Bank Ltd
| Market Cap | ₹ 10,165 Cr. |
| Current Price | ₹ 137.50 |
| 52-wk High | ₹ 168 |
| 52-wk Low | ₹ 120 |
| Stock P/E | 10.4 |
| Book Value | ₹ 101 |
| Dividend | 0.73 % |
| ROCE | 6.01 % |
| ROE | 13.4 % |
| Face Value | ₹ 1.00 |
| P/B Value | 1.36 |
| OPM | 67.1 % |
| EPS | ₹ 13.2 |
| Debt | ₹ 57,086 Cr. |
| Debt to Equity | 7.66 |
City Union Bank Ltd Share Price Target 2024 To 2030
| Year | 1st Target | 2nd Target |
| 2024 | ₹154 | ₹234 |
| 2025 | ₹254 | ₹287 |
| 2026 | ₹300 | ₹354 |
| 2027 | ₹398 | ₹456 |
| 2028 | ₹460 | ₹475 |
| 2029 | ₹480 | ₹496 |
| 2030 | ₹500 | ₹521 |
City Union Bank Ltd Shareholding Pattern
| FII Holding | |
| Dec 2022 | 23.75% |
| Mar 2023 | 24.95% |
| June 2023 | 25.33% |
| Sept 2023 | 23.66% |
| Dec 2023 | 26.60% |
| DII Holding | |
| Dec 2022 | 37.74% |
| Mar 2023 | 36.18% |
| June 2023 | 33.12% |
| Sept 2023 | 33.18% |
| Dec 2023 | 32.39% |
| Public Holding | |
| Dec 2022 | 38.53% |
| Mar 2023 | 38.85% |
| June 2023 | 41.54% |
| Sept 2023 | 43.15% |
| Dec 2023 | 41.01% |
City Union Bank Ltd Share: Last 5 Years’ Financial Condition
To better understand how the market is performing, let’s look at the outlook of this share in the previous years.
However, investors should be aware of the risks and the market conditions before making any investment decision.
Last 5 Years’ Sales:
| 2019 | ₹ 3,767 Cr |
| 2020 | ₹ 4,169 Cr |
| 2021 | ₹ 4,135 Cr |
| 2022 | ₹ 4,105 Cr |
| 2023 | ₹ 5,125 Cr |
Last 5 Years’ Net Profit:
| 2019 | ₹ 683 Cr |
| 2020 | ₹ 476 Cr |
| 2021 | ₹ 593 Cr |
| 2022 | ₹ 760 Cr |
| 2023 | ₹ 979 Cr |
Last 10 Years’ Profit Growth:
| 10 Years: | 11% |
| 5 Years: | 10% |
| 3 Years: | 25% |
| Current Year: | 5% |
Last 10 years’ Return on Equity (ROE):
| 10 Years: | 13% |
| 5 Years: | 12% |
| 3 Years: | 12% |
| Last Year: | 13% |
Sales Growth Over 10 Years:
| 10 Years: | 8% |
| 5 Years: | 7% |
| 3 Years: | 4% |
| Current Year: | 13% |
Conclusion
This article is a complete guide about City Union Bank Ltd Share.This information and forecasts are based on our research, company fundamentals, history, experiences, and various technical analyses.
Also, We have discussed the share’s prospects and growth potential in detail.
This information will help you in your further investment.
If you are new to our website and want to get all the latest updates related to the stock market, join us on Telegram Group.
If you have any further queries, please comment below. We will be happy to answer all your questions.
If you like this information, share the article with as many people as possible.
Also Read: ₹174 EV Share; First Target ₹250, Second Target ₹282; Upcoming Hydrogen Bus
