HDFC Securities is bullish on State Bank of India has recommended buy rating on the stock with a target price of Rs 286 in its research report dated August 01, 2020.
HDFC Securities' research report on State Bank of India
SBIN’s 1Q was ahead of estimates across fronts, aided by margin improvement, high treasury gains, and lower provisions. Asset quality improvement was optical, and COVID-19 provisions seem inadequate. Our conservative earnings estimates, consequently, remained mostly unchanged. Asset quality trends and capital raising (given SBIN’s weak capital base and RoAE profile) should be watched for. The term of SBIN’s current chairman is set to end in Oct-20, which creates additional uncertainty.
However, SBIN has one of the strongest deposit franchises, and this, along with inexpensive valuation, drives our BUY rating (SoTP value of Rs 286).
For all recommendations report, click here
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