Buy SBI For Rs. 545 Target In 3 Months: ICICI Direct

Stock markets continue to be in pressure owing to the current conflict between Russia and Ukraine. Other concerns plaguing the stock markets currently are continued FII selling as well as macros.

So, in the given scenario, when Bank Nifty is down by close to 2 percent, ICICI Direct has placed its 'Buy' rating on the stock of State Bank of India for a target price of Rs. 545 to be hit in 3 months.

Buy SBI for Rs. 545 target price:

The brokerage has mentioned the pick in its Techno Funda picks wherein it suggests to buy quality stocks amid volatility.

Technical outlook for the scrip SBI:

The brokerage mentions that the PSU banking index has seen structural turnaround. The bank has been an outperformer within the pack maintaining higher peak and higher trough in long term chart. We expect it to continue its outperformance, notes the brokerage. "The uptrend is well defined by stronger rallies and shallow retracements, key ingredients of a major bull phase. During this phase incremental buying demand is getting attracted at five month average, held since November 2020 and even in recent correction. The brokerage says that the stock will continue with its positive momentum and retest its all-time high of Rs. 549 in coming months.

 

Fundamental Outlook:

SBI is a public sector bank and also the largest bank in India with a balance sheet size of appx. Rs. 48 lakh crore. The bank has strong liability franchisee with trend setting abilities in terms of rates. It also has best operating metrics in the PSU space. The bank is also doing good on the asset quality front with GNPA ratio declining 40 bps sequentially. Slippages also reduced to multi-year low. Total restructuring is now at 1.2% of loans i.e. at similar levels to previous quarter

"Overall outlook for the bank remains positive as the bank has got healthy pipeline to aid business growth, while sufficient provision buffer should avoid any earnings shock", adds the brokerage.

 

Disclaimer:

Goodreturns.in has taken utmost care in compilation of data for its web site.The above stock recommendation is as listed by ICICI Direct and should not be construed as investment advise to buy or sell stocks, gold, currency or other commodities.