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Buy State Bank of India: target of Rs 320: Sharekhan

Sharekhan is bullish on State Bank of India has recommended buy rating on the stock with a target price of Rs 320 in its research report dated December 23, 2020.

December 24, 2020 / 11:18 AM IST
 
 
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Sharekhan's research report on State Bank of India


State Bank of India (SBI) is an attractive play on a gradual recovery in Indian economy, with a healthy PCR (88% including Technical Write Off), robust Tier 1 capital ratio of ~11.9% and a strong liability franchise. Manageable asset quality outlook with a 97% collection efficiency, guidance of just Rs. 60,000 crore for FY2021 slippages and restructuring (~2.5% of gross advances), and only ~Rs 2,000 crore of provisions remaining provide comfort. Stock trades at 1.2x / 1.0x its FY2022E / FY2023E ABVPS which is reasonable; while we maintain cautious stance on PSU banks, we find that SBI is best-placed with strong fundamentals.


Outlook


We maintain a Buy rating on the stock with a revised SOTP-based PT of Rs. 320.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Dec 24, 2020 11:18 am

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