Buy State Bank of India target of Rs 262: Sharekhan
Sharekhan is bullish on State Bank of India has recommended buy rating on the stock with a target price of Rs 262 in its research report dated June 05, 2020.
June 07, 2020 / 08:29 PM IST
Sharekhan's research report on State Bank of India
State Bank of India (SBI) posted mixed results for Q4FY2020, wherein, on one hand, operational performance lagged expectations, but a reasonable moratorium book and sequentially better asset quality were positives. For COVID-19 related provisions, the bank has taken provision of Rs. 938 crore (15% for loans outstanding of value Rs. 6,250 crore) and Rs. 234 crore for standard assets. Provision coverage stood at healthy 83.62% in Q4FY2020 (versus 81.7% in Q3FY2020). However, considering the tough conditions, we have revised our growth and credit cost estimates for FY2021E and FY2022E and the target multiple.
We maintain our Buy rating on the stock with a revised price target (PT) of Rs. 262.
For all recommendations report, click here
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