Sharekhan is bullish on State Bank of India has recommended buy rating on the stock with a target price of Rs 280 in its research report dated July 31, 2020.
Sharekhan's research repor on State Bank of India
State Bank of India (SBI) posted encouraging results with asset-quality improvement on a sequential basis, and performance aided by one-time gain of Rs. 1,539 crore from stake sale benefit of the subsidiary. Asset-quality performance was robust and GNPA at 5.44% (down 209 bps y-o-y and 71 bps q-o-q) improved significantly. Moratorium book was at 9.5% of term loans versus 23% earlier, of which ~2% was comprised of AA and AAA rated corporate borrowers, which is encouraging. At <1x its FY2022E BVPS, valuations are attractive.
We maintain our Buy rating on the stock with a revised PT of Rs. 280.
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