Moneycontrol

Budget 2023Budget 2023

PARTNERS

  • Tata AIA Life Insurance
  • Hafele
  • Motilal Oswal
Live: FICCI live: Gadkari on future of mobility
Budget 2023
Budget 2023

Buy State Bank of India: target of Rs 650: Sharekhan

Sharekhan is bullish on State Bank of India has recommended buy rating on the stock with a target price of Rs 650 in its research report dated March 28, 2022.

March 29, 2022 / 08:03 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Sharekhan's research report on State Bank of India

As credit growth has steadily improved, we believe banks with strong balance sheet, capital position and investments in digitalisation/technology are better placed to ride on the potential uptick in credit off-take. State Bank of India (SBI) has an edge in terms of loan book growth deriving from overall systemic improvement in credit demand. The management’s focus on building a granular loan portfolio with better underwriting practices has aided robust operating performance and profitability. The bank’s asset quality too has improved significantly over the past three years. With a correction of 10% from highs of Rs. 549, SBI presents a good investment opportunity.

Outlook

The stock trades at 1.6x and 1.5x its FY23E and FY24E P/BV. We maintain a Buy rating on the stock with an unchanged SOTP-based PT of Rs. 650.