Shares of UCO Bank Ltd rose sharply in Friday's trade to scale their one-year high level. The stock surged 5.65 per cent to hit a 52-week high of Rs 51.60. At this price, the scrip has gained 25.21 per cent in five consecutive trading sessions.
UCO Bank's MD & CEO Ashwani Kumar, in an earnings call today, said, "As on date, we have given Rs 702 crore for renewable sector. We are launching new product for rooftop solar also. Maybe today or tomorrow that product will be launched."
In response to a query on dividend, Kumar mentioned that last year it could not get the permission from Reserve Bank of India (RBI). "We'll wait for the approval from the Reserve Bank then only we'll be able to comment on the dividend," he stated.
When asked about capital raising, Kumar said, "During this quarter (Q4 FY24), we don't have any plans. Next year, when we go to the board again, with the approval of the capital raising plan and we will approach government also, maybe for growth plus or maybe for QIP, whatever we plan in the next year."
The state-run lender recorded a 22.97 per cent decline in its net profit, at Rs 503 crore, for December quarter 2023-24, as against Rs 653 crore in the year-ago period. Gross NPA (non-performing asset) reduced by 178 basis points (bps) to 3.85 per cent in Q3 FY24 and net NPA reduced by 68 bps to 0.98 per cent on a consolidated basis.
Technical analysts suggested that support on the counter could be seen around Rs 44. On the higher side, immediate resistance will be at Rs 52. Investors may consider booking profits at current levels, one of the analysts said.
Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "Support would be near Rs 44.50 zone. Next potential upside targets will be Rs 52-55.50 levels."
DRS Finvest founder Ravi Singh said, "The stock may hit Rs 55 in the near term. Keep stop loss placed at Rs 44."
AR Ramachandran from Tips2trades said, "UCO Bank stock price looks bullish but also overbought on daily charts with next resistance at 52. Investors should book profits at current levels."
The government's shareholding in the Kolkata-based lender stood at 95.39 per cent at the end of the third quarter this fiscal.
(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)
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