SBI Stocks: Buy State Bank of India, target price Rs 642: LKP Securities | Rare Techy


has a buy call with a target price of Rs 642. The current market price of State Bank of India is Rs 515.95. The timeframe given by the analyst is Intra Day when the price of State Bank of India can reach the specified target.

State Bank of India, established in 1955, is a banking company (having a market capitalization of Rs. 473941.51 million).

Major Products / Segments of Income of State Bank of India for the year ending 31-March-2022 include Interest & Discounts, Income from Investments, Interest and Interest on Balances with RBI and other inter-bank funds.


For the quarter ended 30-06-2022, the company reported a Consolidated Revenue of Rs 94524.30 crore, down -12.51% from the previous quarter’s Rs 108034.68 crore and down 1.35% from 9,966 in the same quarter last year. . The bank reported a net profit after tax of Rs 7325.11 crore in the last quarter.

Investment Rationale
Under the base case scenario, we expect the bank to post ROA/ROE of 0.9%/15% by FY24E driven by healthy balance sheet growth coupled with high PCR and stable capital quality. The brokerage recommends BUY with a target price of ₹642 (21% upside potential). It is an independent bank with a PBV of 1.3xFY24E Adj. BVPS of ₹ 379 and equity value per share at ₹ 149.

Promoter / FII Holdings
Investors held 57.57 percent stake in the company as of 30-June-2022, while FIIs held 9.62 percent, DIIs 25.09 percent.

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