Tuesday, October 25, 2011

Union Bank - Poor Results Avoid

Union Bank of India touched a 52-week low of Rs 211.65. At 14:41 hrs the share was quoting at Rs 212.65, down Rs 27.30, or 11.38%.

Union Bank disappointed the street by its numbers, falling over 9%. Net profit for the second quarter of FY12 stood at Rs 353 crore as against expectations of Rs 519 crore and net interest income reported at Rs 1,661 crore while CNBC-TV18 poll saw it at Rs 1,626 crore.
It was trading with volumes of 774,856 shares. In the previous trading session, the share closed down 4.10% or Rs 10.25 at Rs 239.95.

Performance :
The scrip has grossly under performed and has been losing on all paramters and is now headed for steeper fall going forward.

Share Price Movement During The Last 12 Months
PeriodPriceLatest PriceGain/Loss (Rs.)% Gain/Loss

Our Recommendation :

The stock is poised to test 150 levels and should be avoided due to poor performance during the last 12 months.  HOwever long term investors with a holding time frame of 12-18 months should avail the steep correction to add to their portfolio and buy around 150 levels

Bought to you By :

Ingenious Investor
Equity Research Division

Ravina Consulting
Pattamal Plaza
3rd Cross Kamanahalli

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