Shares of City Union Bank (CUB) and L&T Finance were in focus as the stocks reacted to Q4 earnings. CUB in particular zoomed over 8 per cent to an intra-day high of ₹293.50 on Tuesday, and traded with a gain of 3 per cent at ₹280. Meanwhile, LTF traded on a flat note around ₹287 levels. Post Q4 results, research analysts at Elara Capital are bullish on both stocks and predict up to 28 per cent upside for these 2 financial shares. Similarly, technical analyst at Choice Broking expects these stocks to rally up to 13 per cent in the near-term.
Technical outlook on CUB and LTF by Aakash Shah, technical analyst at Choice Broking
City Union Bank
Current Market Price: ₹279
CUB has witnessed a sharp turnaround after consolidating at lower levels, and has given a clean breakout above the recent resistance band at ₹275, indicating renewed bullish momentum, says Aakash Shah. The analyst highlights that the price action is supported by a rising trendline from recent swing lows, indicating steady accumulation and improving sentiment. "Technically, CUB is positioned above all its major moving averages, including the 200-, 50-, 100- and 200-day Exponential Moving Averages (EMAs), which reinforces the positive structure," explains Shah. The analyst another 13 per cent rally towards ₹300 – ₹315 levels in the coming sessions, while sees key support for the stock at ₹265.
L&T Finance (LTF)
Current Market Price: ₹287
"LTF has displayed a strong reversal from its recent swing lows, where the stock formed a notable Doji candlestick pattern, signalling exhaustion of selling pressure and the beginning of renewed buying interest," explains Shah. Currently, the stock is undergoing a healthy consolidation below its earlier swing high zone, indicating strength rather than an overstretched move. The analyst notes that the price action remains constructive with a steady formation of higher lows on the chart, thus reflecting improving sentiment. Among key levels to watch, Shah expects immediate support for the stock near ₹275 and projects an upside target around the ₹310 – ₹320 zone (up 11.5 per cent from current levels).
Elara Capital sees up to 28% in CUB, LTF
Analysts at Elara Capital believe that CUB delivered a strong Q4 across key metrics, with Profit After Tax (PAT) at ₹3,600 crore, driven by healthy core performance despite elevated ECL-led prudent provisions. ALSO READ | City Union Bank shares gain 8% after Q4 results; dividend, bonus announced The brokerage highlights strong improvement in loan growth (~9.5 per cent QoQ / ~25.7 per cent YoY), better NII traction (~4.5 per cent QoQ) along with stronger-than-expected core other income (~16.8 per cent QoQ). Going ahead analysts expect the stock re-rating to continue, and factoring in better NII outlook, it raised the FY27E/FY28E EPS by ~2-3 per cent each. Elara Capital maintained its 'Buy' rating on the stock, with a upward revised target price of ₹345 per share. This translated into a 27.3 per cent upside for the stock. Similarly, the brokerage firm sees up to 28.5 per cent upside for L&T Finance stock, with an unchanged rating of 'Buy' and target price of ₹370 per share. Elara Capital believes that LTF is positioned for a robust earnings delivery in FY26-28E – PAT CAGR of 27 per cent and ROE expansion of ~370 bps on the back of an increasing share of high-yielding book and rural group loans led by micro lap, gold, 2W and SME finance. Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.