Mehabe score: 5 G Factor: 4 Piotski Score: 7 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 7.
Description
UCO Bank is engaged in providing wide range of banking and financial services including Retail Banking, Corporate Banking and Treasury Operations.[1]Site:UCOBANKMain Symbol:UCOBANK
Stock trades at 14.6, above its 50dma 13.39. It also trades above its 200dma 13.2. The stock remains bullish on techicals
The 52 week high is at 16.35 and the 52week low is at 10.60
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.88 times its book value
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -4.89% over past five years.
– has a low return on equity of -13.98% for last 3 years.
-Contingent liabilities of Rs.80463.13 Cr.
– might be capitalizing the interest cost
-Earnings include an other income of Rs.3915.85 Cr.
Competition
– The industry trades at a mean P/E of 11.9x. UCO Bank trades at the industry’s max P/E of 70.8x. UCOBANK trades at a P/E of 70.8x
– Industry’s mean G-Factor is 4.8 while the mean Piotski score is 8.0. UCOBANK has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is 21.4%. The max 1- month return was given by Union Bank (I): a return of 44.43 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 3720.0 cr compared to Rs 3615.0 cr for period ended Sep 2020, a rise of 2.9%
Operating Profits reported at Rs 2218.0 cr for period ended Sep 2021 vis-vis 2331.0 for period ended Sep 2020 .
Operating Margins contracted -485.8 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 0.17 compared to Rs 0.09 for previous quarter ended Jun 2021 and Rs 0.03 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 14458.0 cr for period ended TTM vis-vis sales of Rs 14446.0 cr for the period ended Mar 2021, a growth of 0.1%. The 3 year sales cagr stood at 0.3%.
Operating margins expanded to -3449.0% for period ended TTM vis-vis -3661.0% for period ended Mar 2021, expansion of 21200.0 bps.
Net Profit reported at Rs 423.0 cr for period ended TTM vis-vis sales of Rs 167.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 2422.0 cr for period ended Mar 2021 vis-vis Rs -10658.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 0.0% compared to -14.0% over the last 3 Years. – The stock has given a return of 24% on a 1 Year basis vis-vis a return of -5% over the last 3 Years. – The compounded sales growth on a TTM bassis is -4% vis-vis a compounded sales growth of 1% over the last 3 Years. – The compounded profit growth on a TTM basis is 114% vis-vis a compounded profit growth of 26% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 0.09% vis-vis 0.08% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 3.24% vis-vis 3.25% for Jun 2021
Conclusion
– Stock is trading at 0.88 times its book value – has low interest coverage ratio.
-The company has delivered a poor sales growth of -4.89% over past five years.
– has a low return on equity of -13.98% for last 3 years.
-Contingent liabilities of Rs.80463.13 Cr.
– might be capitalizing the interest cost
-Earnings include an other income of Rs.3915.85 Cr.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 13.39 and is trading at 14.6, thus bullish price action wise.
