The IIFL Securities Report: Buy State Bank Of India

IIFL Securities issued a buy recommendation for State Bank of India (SBI) on October 14, setting a target price of Rs 830. This represents a potential upside of 2.7% from the current market price of Rs 808. The brokerage cited SBI's strong market position, improving asset quality, and positive outlook for the banking sector as key factors driving its bullish stance. Investors may consider this buy call as part of their investment strategy, keeping in mind the potential risks associated with investing in the stock market.

About State Bank Of India:

State Bank of India (SBI) is an Indian multinational, public sector banking and financial services company. It is the largest commercial bank in India in terms of assets, deposits, branches, customers and employees. SBI was founded in 1806 as the Bank of Calcutta and is headquartered in Mumbai, Maharashtra. With an asset base of over ₹47 trillion (US$600 billion) and a customer base of over 450 million, SBI is the 43rd largest bank in the world by assets. The Government of India owns 56.97% of the bank's shares. SBI offers a wide range of banking and financial services, including personal banking, corporate banking, investment banking, private banking, and insurance. The bank has a network of over 24,000 branches and 59,000 ATMs across India and has a presence in over 30 countries.

52 Week Price Trend:

State Bank of India (SBI), India's largest public sector bank, is currently trading at Rs 808, close to its 52-week high of Rs 777.5. This represents a significant recovery from its 52-week low of Rs 501.55, indicating growing investor confidence in the bank's performance and future prospects. SBI has a strong presence in various financial segments, including retail banking, corporate banking, and international operations. Its size and market share provide it with competitive advantages and economies of scale. The recent surge in its share price suggests that investors believe in the bank's ability to navigate current economic challenges and maintain its strong financial position.

Stratzy's MOST Analysis:

Stratzy's MOST Framework has rated SBIN (State Bank of India) with an AAA rating, indicating that the bank has a low fundamental risk. This rating is based on the bank's strong management, positive outlook, high safety, and favorable trend. The bank's solid financial performance, experienced leadership team, and commitment to risk management contribute to its strong management pillar. The positive outlook reflects the bank's growth potential and the industry's tailwinds. The bank's robust financial position, low non-performing assets, and adherence to regulatory norms contribute to its high safety pillar. Lastly, the favorable trend in the banking sector supports the bank's overall rating.

Company's Fundamentals:

State Bank Of India (NSE: SBIN) is a publicly traded company listed on the National Stock Exchange (NSE) of India. Its stock currently has a Price-to-Earnings (PE) ratio of 9.84, indicating that investors are willing to pay 9.84 times the company's annual earnings to own its shares. The Price-to-Book (PB) Ratio of 1.89 suggests that the market value of SBIN's assets is 1.89 times their book value, indicating potential undervaluation or overvaluation depending on the context. Additionally, SBIN offers a Dividend Yield of 1.49%, which represents the annual dividend paid to shareholders as a percentage of the current share price. This dividend yield provides investors with a stream of passive income.

Fundamental and Technical information provided in this blog were last updated on 08 Oct, 2024

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