in its latest report said SBI exited FY22 with 13.9 per cent return on equity (RoE) and 0.67 per cent return on assets (RoA) aided by growth build-up, GNPAs at a decadal low, slippages less than 1 per cent, credit cost at 55 bps and steady margin profile. The brokerage firm has a target of Rs 673 on the stock.
The scrip ended 0.43 per cent higher at Rs 447.80 on Tuesday. With a market capitalisation of Rs 3,99,644 crore, the shares are trading below 5, 10, 20, 50, 100 and 200-DMA.
said SBI has shown a strong overall financial performance with a revival on the retail loan book. Asset quality has also improved over the quarters. “The management expects to have firm growth in coming quarters despite rising inflation and input costs. SBI is moving ahead with healthy PCR and capitalisation and a positive outlook in the Indian economy. Hence, we reiterate our ‘buy’ rating on the stock, with a revised target price of Rs 606 using the SOTP methodology,” it added.
Emkay Global has a ‘Buy’ call on State Bank of India with a target price of Rs 640. “SBI remains one of the preferred picks, given its healthy growth trajectory and improving RoA/RoE profile. SBI has come a long way and is now far better placed in terms of delivering sustained profitable growth, but it still trades at cheap valuations. The PSU bank is reasonably capitalised and can shore up capital buffers by tapping capital market/unwinding value in subsidiaries,” it said.
For Sharekhan, SBI is worthy of Rs 600. In FY23E, the brokerage house noted that there could be volatility in earnings due to mark to margin (MTM) losses from available for sale (AFS) book in the near term, however, with improving asset quality, higher PCR, higher capital levels and high rated loans in corporate segment augurs well for the bank in future and bank is well-positioned to gain market share on the business front. Its deposit franchise, better performance from subsidiaries, and a low risk of dilution (as compared to PSU bank peers) are likely to favor the business, it said.
The PSU bank reported a 41.27 per cent YoY jump in standalone net profit at Rs 9,113.53 crore for March quarter, up from Rs 6,450.75 crore in the year ago quarter.
NIM was stable sequentially at 3.12 per cent. Gross non-performing assets (NPAs) were at 3.97 per cent of the total assets, down from 4.50 per cent sequentially and 4.98 per cent year-on-year.
Promoters held 57.59 per cent stake in the bank as of March 31, 2022, while FIIs owned 9.97 per cent, DIIs 24.65 per cent.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
