1370% Dividend, Record Date In 3-Days: PSB Gives Acquisition Update, Buy For TP Rs 910: PL

Prabhudas Liiladher has recommended traders to buy leading public sector lender State Bank of India (SBI) with target price of Rs 910 after recent quarterly results. Current market price of State Bank of India share on BSE is Rs 820.85 per share with intraday gain of 0.37% as on May 18, 2024. Board of Directors of SBI recommended dividend of Rs 13.70 per equity share of the face value of Re 1 each for the FY 2024. SBI shares offered highest return of 240% in last 10-years and surged 43% in last 1-year. SBI declared its highest dividend in 2013 amounting to Rs 41.50 per share.

SBI split face value of its share once in the ratio of 1:10 in 2014. FII/FPI have increased holdings from 10.91% to 11.09% in March 2024 quarter. Life Insurance Corporation Of India (LIC) has 8.93% stake in SBI with 788,334,739 shares of the bank.

SBI Declares Dividend: As per the regulatory filing of the public sector lender, ""The Central Board of the Bank, at its Meeting held today, has declared a Dividend of Rs 13.70 per equity share (1370%) for the financial year ended 31.03.2024," the company said in an exchange filing."

SBI Sets Record Date For Dividend: The PSB set May 22 as the record date for dividend.

How To Be Eligibile For SBI Dividend? Record date remains crucial role in determining eligibility of shareholders for receiving dividend. Individuals whose name appear in company's shareholders record as on the record date will become eligible to earn dividend announced by the company. SBI Ltd fixed May 22 as the record date for dividend.

SBI Share Performance & Return: The 52-week high price of State Bank of India shares on BSE is Rs 839.60 apiece (as on 30/04/2024) and 52-week low price is Rs 543.15 apiece (as on 26/10/2023), respectively. SBI has a market capitalisation of Rs 7,40,787.41 crore. SBI has a ROE of 15.89 and PE of 12.98. The EPS (TTM) is 63.95. State Bank of India Ltd shares gave return of 28% in last 3-months, jumped 44% in last 1-year, rallied 69% in last 2-years, and offered gain of 135% in last 3-years. In last 5-years, the scrip gained 170%.

SBI Gives Acquisition Update: According to the BSE filing of SBI dated May 17, 2024, SBI executed transaction documents seeking to acquire a 6.125% stake in CCIL IFSC Limited for Rs 6.125 crore. "Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we inform that State Bank of India has executed transaction documents for purchase of 61,25,000 shares of CCIL IFSC Limited."

Prabhudas Lilladher On SBI: According to the analyst, "SBI reported a good quarter; while NIM was in-line, core PPoP was materially higher due to lower staff cost as provision on wage revision was much lower at Rs7bn (guidance Rs54bn). Compared to PSU peers, SBI is better insulated to absorb RBI provision requirements relating on ECL & project financing as (1) buffer provisions are Rs323bn (2) project exposure at 3.3% is lower and (3) earlier ECL estimate of Rs300bn would be revised downward due to improved credit quality. We remain positive on SBI although valuation has touched 1.3x given recent run-up, which limits upside. Rolling forward to Mar'26 ABV, we tweak multiple to 1.5x and raise SOTP based TP to Rs910 from Rs770. Retain 'BUY'."

SBI Dividend History: State Bank of India announced 23 dividends since July 2, 2001. In last 12 months, SBI announced an equity dividend amounting to Rs 11.30 per share (highest dividend in 9-years). At the current share price of Rs 830.0500, State Bank of India offers a dividend yield of 1.38%. In 2014, it announced Rs 15/ share final dividend and Rs 15/share interim dividend. Its highest dividend was declared in 2013 amounting to Rs 41.50 per share.

SBI Stock Split History: State Bank of India split face value of its share once since November 20, 2014. SBI last split the face value of its shares from Rs 10 to Re 1 in 2014.SBI share traded ex-split as on November 20, 2014.

Disclaimer: The stock has been picked from the brokerage report of Prabhudas Lilladher. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.