Rajiv Mehta, India Infoline advice investors to buy State Bank of India (SBI).
Mehta told CNBC-TV18, "State Bank of India (SBI) in terms of price upside wherein we have got criteria of 10% upside is a buy, it is a buy for us also but near-term it may still continue to languish around the current levels given the fact that there is no visibility as far as government fund infusion is concerned and that is more lingering issue on the stock because as far as the asset quality is concerned a lot already has been priced in."
He further added, " Federal Bank we initiated coverage 15-20 days back with a buy rating with a target price of Rs 440, its down well, I think even in the current down cycle, current price correction this has not corrected so much and it looks more resilient given the fact that the valuation is very cheap, it is hardly one time FY13 price to book and its performance at least the latest quarter a few quarters have been pretty good and even in the Q3 there is not much of a negative surprise coming in, so till the time we don't see any material negatives coming in, in the forthcoming quarters, banks like these could remain where they are."
Disclosure: I don't personally hold the stocks that discussed.
