City Union Bank share price in focus: Despite the Indian stock market trading in a narrow range, shares of City Union Bank extended their winning streak for a fourth consecutive session on Tuesday, June 10, gaining another 2% to reach their highest level since March 2020 and inching closer to the all-time high of ₹249.35 apiece, last seen in January 2020.
The stock of the private sector lender has been on an upward trajectory over the past four months (including June), delivering a strong 40% return and significantly outperforming the Nifty Bank index, which gained 17.30% during the same period.
Investor sentiment towards the bank has improved following its return to a growth trajectory in the March quarter, driven by ongoing digital transformation efforts. This performance has also prompted domestic brokerage firms to raise their target multiples, further fueling the rally.
The bank is planning to raise funds, with a final decision expected at the upcoming Annual General Meeting (AGM). The AGM date will be set during the Board of Directors meeting scheduled for Wednesday, June 11, 2025.
For the March quarter, the bank reported a 13% YoY increase in net profit to ₹288 crore, driven by stronger fee income, particularly from insurance and processing charges. Net Interest Income (NII) rose 10% YoY to ₹600 crore, while Net Interest Margins (NIMs) improved marginally by 2 basis points, as the bank shed lower-yielding loans.
Following the bank’s in-line performance, ₹225 apiece while maintaining a ‘Buy’ rating”>Axis Securities revised its target price for City Union Bank to ₹225 apiece while maintaining a ‘Buy’ rating. Similarly, IDBI Capital retained its ‘Buy’ rating with a target of ₹215. Anand Rathi also maintained a ‘Buy’ with a 12-month target of ₹218, while Prabhudas Lilladher raised its target to ₹210 from ₹200, reiterating its ‘Buy’ stance.
Breakout above ₹210 could propel stock towards ₹300, says expert
Anshul Jain, Head of Research at Lakshmishree Investments, said, ” City Union Bank is consolidating in a massive 236-week-long base with a pivot neckline placed at ₹210. A breakout above this level, especially with strong volume participation, will mark a significant structural shift and act as a launchpad for a major rally.
“The upside target post-breakout is placed at ₹300. Given the duration of the base and potential for re-rating, traders and investors should watch ₹210 closely for confirmation before entering long positions,” Anshul further added.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
