Stocks of Union Bank, BOI, and Syrma SGS experience up to 12% decline today; check out their share price targets

Three stocks, including two PSU banks — Union Bank of India and Bank of India, and Syrma SGS Technology Ltd, experienced significant declines in Monday’s trade due to disappointment over their March quarter results.

Bank of India saw a sharp drop of 12.35 per cent, hitting a low of Rs 121.70 on BSE. Union Bank shares also tanked, falling by 8.2 per cent to reach a low of Rs 130.40. Syrma SGS Technology Ltd tumbled by 11.93 per cent to Rs 415.35 level.

Despite reporting a 19 per cent YoY earnings growth, Union Bank’s operating profit declined by 4 per cent, with provisions decreasing by 57 per cent YoY. Return ratios remained stable with RoA at 1 per cent and RoE at 14 per cent.

Syrma SGS Technology’s Q4 Ebitda margin improved sequentially but declined YoY due to factors such as focus on high volume-based business with lower margins and higher input prices. ICICI Securities believes that a revival in the healthcare segment and operating leverage benefits may help revive margins in the future.

Morgan Stanley has suggested an ‘underweight’ call on Bank of India, citing higher slippages and credit costs in the March quarter. The brokerage has set a target of Rs 124 on the stock.

Investors are advised to consult with a qualified financial advisor before making any investment decisions based on this news.