Union Bank of India
ISIN: INE692A01016 • Market Cap: ₹1.42 Lakh Cr
The 5-Pillar Quality Audit for Union Bank of India
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (23.0%), Return on Capital Employed (14.6%), and equity compounding (16.2%).
2. Financial Health & Solvency
Weight: 25%Assesses capital adequacy, provisioning coverage, and asset liability structure.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (3.1%) and 3Y PAT CAGR (13.2%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 6.86 vs PEG of 1.02 and Dividend Yield of 2.7%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 74.8%, backed by 20.6% institutional ownership.
Key Fundamental Strengths
Attractive Valuation Margin (P/E: 6.86)
Trading at a P/E multiple of 6.86, the stock offers a favourable risk-reward entry for quality compounding.
Consistent Market Standing (Large Cap)
Established player in the Financial Services sector with an overall fundamental quality score of 69/100.
Areas to Watch & Potential Risks
Topline Stagnation (3Y Sales CAGR: 3.1%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Sectoral & Macro Headwinds (Financial Services)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Financial Services space.
Quantitative Strategy Eligibility
Checking UNIONBANK against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 69/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Financial Services Sector Peer Comparison
Compare UNIONBANK directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Union Bank of India (UNIONBANK)Current | 69/100 | ₹1.42 Lakh Cr | 6.86 | 14.6% | N/A | — |
| HDFC Bank Ltd. (HDFCBANK) | 74/100 | ₹11.10 Lakh Cr | 14.05 | 12.8% | 1.01 | View |
| ICICI Bank Ltd. (ICICIBANK) | 76/100 | ₹10.06 Lakh Cr | 17.94 | 16.5% | 0.62 | View |
| State Bank of India (SBIN) | 71/100 | ₹9.66 Lakh Cr | 11.20 | 12.2% | 1.38 | View |
| Bajaj Finance Ltd. (BAJFINANCE) | 68/100 | ₹6.72 Lakh Cr | 33.07 | 13.9% | 3.86 | View |
| Life Insurance Corporation of India (LICI) | 87/100 | ₹5.22 Lakh Cr | 8.70 | 37.8% | 0.00 | View |
Frequently Asked Questions: Union Bank of India
Q:What is the 5-Pillar Fundamental Score for Union Bank of India (UNIONBANK)?
Union Bank of India has a RupeeTools Fundamental Score of 69/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (76/100), Financial Health (50/100), Growth (55/100), Valuation (85/100), and Ownership Quality (80/100).
Q:Is UNIONBANK fundamentally strong for long-term investment?
UNIONBANK currently holds a moderate quality rating of 69/100. While it operates in the Financial Services sector, investors should monitor its debt health before initiating long-term positions.
Q:Does UNIONBANK pass the Coffee Can Investing filter?
No. UNIONBANK does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does UNIONBANK compare against other Financial Services peers?
Within India's Financial Services sector, UNIONBANK trades at a P/E of 6.86 and generates an ROCE of 14.6%. Compare its 5-Pillar score of 69/100 against top sector peers like HDFC Bank Ltd. (74/100), ICICI Bank Ltd. (76/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.