UCO Bank shares more than double in four months; buy, sell or hold?
UCO Bank share price today: On October 19, 2022, the UCO Bank stock closed at Rs 12.11. On February 17 this year, the stock ended at Rs 26.15 rising 116% during the period.
- Feb 20, 2023,
- Updated Feb 20, 2023 1:52 PM IST
Shares of public sector lender UCO Bank are on a roll with the stock more than doubling in the last four months. On October 19, 2022, the stock closed at Rs 12.11. On February 17 this year, the stock ended at Rs 26.15 rising 116% during the period. In the current trading session, the stock opened flat at Rs 26.15. The banking share was trading 2.29% at Rs 25.55 on BSE. UCO Bank shares have lost 9.06% in the last 6 days.
In a year, the stock has zoomed 102% but lost 18.73% in 2023.
At 12:08 pm, 10.46 lakh shares of the firm changed hands amounting to a turnover of Rs 2.72 crore on BSE. Market cap of the lender fell to Rs 30,607 crore. On NSE, 57.04 lakh shares of the lender changed hands amounting to a turnover of Rs 14.87 crore. Market cap of the firm fell to Rs 30,547 crore.
The shares of UCO Bank hit a 52-week high of Rs 38.15 on December 16, 2022 and a 52 week low of Rs 10.52 on June 20, 2022.
In terms of technicals, the relative strength index (RSI) of UCO Bank stands at 37.4, signaling it's neither oversold nor overbought. UCO Bank stock has a one-year beta of 0.7, indicating very low volatility during the period. UCO Bank stock is trading higher than the 100 day and 200 day moving averages but lower than 5 day, 20 day and 50 day moving averages.
The lender reported a strong set of earnings in the December quarter.
In the third quarter of the current fiscal, UCO Bank reported a 110 per cent rise in profit to Rs 652.97 crore against Rs 310.39 crore in the corresponding quarter of the previous fiscal. Further, net profit for the three quarters that ended December rose to Rs1,281 crore.
UCO Bank's net profits during Q3 and the first three-quarters of FY23 were the highest ever in the 80 years of the Bank's history, it said in a regulatory filing on Tuesday.
Net Interest Income (NII) in the last quarter rose to Rs1,951.87 crore as against Rs 1,762.61 crore same quarter last year, clocking a year-on-year growth of 10.74 per cent.
Net non-performing assets (NPAs) fell to Rs 2,406.90 crore (1.66 per cent of total advances) at the end of December 2022 from Rs 3,333.59 crore (2.81 per cent of total advances) as of 2021.
On the outlook of the stock, Abhijeet from Tips2trade said, "Rising interest scenario since the past 8 months has led to a strong rally in banking stocks including UCO Bank. Currently, UCO Bank looks weak on the Daily charts and a fall till support of Rs 23.5 looks possible. Strong resistance will be at Rs 28.9."
Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said, "The stock has given a spectacular rally from October 2022 to December 2022 period gaining almost 230% and thereafter has witnessed some profit booking to slide gradually to current level of Rs 25. A 50% retracement level near 24 zone would be the next major support level for the stock where we can expect for some consolidation and anticipate for a pullback recovery. The levels near Rs 25 would be crucial support and a decisive breach further below would turn the overall trend weak. At the same time, a prominent move above Rs 29 zone would regain the strength for further rise and improve the bias."
Ravi Singhal, CEO, GCL said, “Due to high rise in interest rates by central banks, their NIMs has improved and NPAs provisioning has also come down. Further growth depends on advances. Our target for UCO Bank is Rs 55 in the next few months.”
Ravi Singh, Vice President and Head of Research, Share India said, "UCO Bank has rallied after delivering financial results with a reduction in NPAs. The loan growth has jumped by almost double digits. Going ahead, Indian banks will gain from tailwind of rising rates as credit growth stays steady and will be a growth propeller in the rest of the fiscal year as high credit growth and stronger margins helped boost earnings. On the technical setup, UCO Bank share price is holding strong with high volumes on daily and weekly chart. As per the momentum indicators, tt may touch the target of Rs 32 in near term."
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Shares of public sector lender UCO Bank are on a roll with the stock more than doubling in the last four months. On October 19, 2022, the stock closed at Rs 12.11. On February 17 this year, the stock ended at Rs 26.15 rising 116% during the period. In the current trading session, the stock opened flat at Rs 26.15. The banking share was trading 2.29% at Rs 25.55 on BSE. UCO Bank shares have lost 9.06% in the last 6 days.
In a year, the stock has zoomed 102% but lost 18.73% in 2023.
At 12:08 pm, 10.46 lakh shares of the firm changed hands amounting to a turnover of Rs 2.72 crore on BSE. Market cap of the lender fell to Rs 30,607 crore. On NSE, 57.04 lakh shares of the lender changed hands amounting to a turnover of Rs 14.87 crore. Market cap of the firm fell to Rs 30,547 crore.
The shares of UCO Bank hit a 52-week high of Rs 38.15 on December 16, 2022 and a 52 week low of Rs 10.52 on June 20, 2022.
In terms of technicals, the relative strength index (RSI) of UCO Bank stands at 37.4, signaling it's neither oversold nor overbought. UCO Bank stock has a one-year beta of 0.7, indicating very low volatility during the period. UCO Bank stock is trading higher than the 100 day and 200 day moving averages but lower than 5 day, 20 day and 50 day moving averages.
The lender reported a strong set of earnings in the December quarter.
In the third quarter of the current fiscal, UCO Bank reported a 110 per cent rise in profit to Rs 652.97 crore against Rs 310.39 crore in the corresponding quarter of the previous fiscal. Further, net profit for the three quarters that ended December rose to Rs1,281 crore.
UCO Bank's net profits during Q3 and the first three-quarters of FY23 were the highest ever in the 80 years of the Bank's history, it said in a regulatory filing on Tuesday.
Net Interest Income (NII) in the last quarter rose to Rs1,951.87 crore as against Rs 1,762.61 crore same quarter last year, clocking a year-on-year growth of 10.74 per cent.
Net non-performing assets (NPAs) fell to Rs 2,406.90 crore (1.66 per cent of total advances) at the end of December 2022 from Rs 3,333.59 crore (2.81 per cent of total advances) as of 2021.
On the outlook of the stock, Abhijeet from Tips2trade said, "Rising interest scenario since the past 8 months has led to a strong rally in banking stocks including UCO Bank. Currently, UCO Bank looks weak on the Daily charts and a fall till support of Rs 23.5 looks possible. Strong resistance will be at Rs 28.9."
Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said, "The stock has given a spectacular rally from October 2022 to December 2022 period gaining almost 230% and thereafter has witnessed some profit booking to slide gradually to current level of Rs 25. A 50% retracement level near 24 zone would be the next major support level for the stock where we can expect for some consolidation and anticipate for a pullback recovery. The levels near Rs 25 would be crucial support and a decisive breach further below would turn the overall trend weak. At the same time, a prominent move above Rs 29 zone would regain the strength for further rise and improve the bias."
Ravi Singhal, CEO, GCL said, “Due to high rise in interest rates by central banks, their NIMs has improved and NPAs provisioning has also come down. Further growth depends on advances. Our target for UCO Bank is Rs 55 in the next few months.”
Ravi Singh, Vice President and Head of Research, Share India said, "UCO Bank has rallied after delivering financial results with a reduction in NPAs. The loan growth has jumped by almost double digits. Going ahead, Indian banks will gain from tailwind of rising rates as credit growth stays steady and will be a growth propeller in the rest of the fiscal year as high credit growth and stronger margins helped boost earnings. On the technical setup, UCO Bank share price is holding strong with high volumes on daily and weekly chart. As per the momentum indicators, tt may touch the target of Rs 32 in near term."
Also read: Adani Power, Adani Wilmar shares jumped up to 5% today. Here's why
Also read: Tata Steel shares in consolidation mode in last one year; when is the right time to buy?