Govt Bank Stock Hits All Time High, Emkay Global Raises Target Price, Sees 16% More Upside

Leading brokerage firm Emkay Global has recommended investors to buy State Bank Of India with a target price of Rs 715 apiece. The current market price of the stock is Rs 614 apiece. Shares of country's largest PSU lender have already gained 3.44% on BSE in morning trade. The current share price of SBI is Rs 614 apiece. Today the share of SBI has hit its new 52-week high as well at Rs 622.90 apiece. Check key takeaways below:

1. State Bank Of India Stock Outlook And Return

The current market price of SBI is Rs 614 apiece with 52-week high at Rs 622 apiece and 52-week low at Rs 425 apiece, respectively. The stock has given a return of 94% in last 5-years, 93% in last 3-years, and 16% in last 1-year.

2. Strong Credit Growth & Asset Re-Pricing Leads To Margin Jump

Overall credit growth accelerated to 20% YoY/5% QoQ, mainly on higher retail/corporate growth. The overseas book continued to see growth, as seen in most PSBs; this is due to a better lending opportunity for Indian corporates. Retail growth remains healthy at 19% YoY/4% QoQ, led by continued strong traction in Xpress credit (up 30% YoY) and the vehicle/mortgage book.

3. Valuation

According to Emkay Global, "Factoring-in better growth/margins and lower LLP, partly offset by higher staff cost due to ad hoc provisions towards wage revision, we raise our earnings for FY23-25E by 10-14% and expect the bank to report decadal-high RoE of 15-18% without equity dilution. We retain BUY on the stock, with revised TP of Rs715 (earlier Rs640), based on 1.4x (earlier 1.3x) Sep-24E standalone ABV and subsidiary valuation of Rs206.

4. About SBI

State Bank of India (SBI) a Fortune 500 company, is an Indian Multinational, Public Sector Banking and Financial services statutory body headquartered in Mumbai. The rich heritage and legacy of over 200 years, accredits SBI as the most trusted Bank by Indians through generations, according to its official website.

Disclaimer

The stock has been picked from the brokerage report of Emkay Global . 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 check with certified experts before taking any investment decision.