Buy State Bank of India; target of Rs 338: Motilal Oswal

Motilal Oswal is bullish on State Bank of India has recommended buy rating on the stock with a target price of Rs 338 in its research report dated February 03, 2017.

February 08, 2017 / 13:36 IST

26 Aug, 2025 12:21

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Motilal Oswal's research report on State Bank of India

Asset quality review (AQR) of the RBI, harmonization of asset recognition with the parent, resultant NPA provisions and balance sheet consolidation continue to mar earnings at the associate banks (ABs) level. Interest reversals on SDR and S4A accounts, higher share of NPAs in 1H and a decline of 5% YoY in loans impacted the 3QFY17 NII performance (-22% YoY and 14% QoQ).

OutlookWe expect credit cost to remain elevated, led by focus on improving strength of the balance sheet. The stock trades at 0.9x FY18E consolidated BV and 10x FY18E consolidated EPS. Buy.

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first published: Feb 8, 2017 01:36 pm

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