PSU Bank Stock Declines 9% YTD, Motilal Oswal Recommends Buy Call

Leading public sector bank, State Bank Of India witnessed a decline of 9% YTD (year-to-date) and shares of the bank delivered return of 23% in last 1-year. Meanwhile, brokerage firm Motilal Oswal has assigned buy call to the stock with target price of Rs 700 per share. If you buy SBI stock now at current market price, you can obtain likely return of 26%. Current market price of SBI share is Rs 554.70 per share with intraday fall of 1.48%. Check details below:

SBI Stock Performance & Return: Last trading price of SBI stock is Rs 554.70 per share on BSE. Its 52-week high price is Rs 629.65 per share and 52-week low price is Rs 446.10 per share, respectively. It has a market capitalisation of Rs 4,95,048.22 crore. SBI shares offered return of 32% in last 2-years, 188% return in last 3-years, and 103% return in last 5-years.

According to Motilal Oswal, "State Bank of India's (SBIN) FY23 annual report highlightsthat the bank is steadily strengthening its balance sheet and consistently delivering healthy RoE while maintaining its leadership position."

Valuation: According to Motilal Oswal, "SBIN reported further improvement in asset quality, with PCR improving to 76% (98.6% on the corporate book) in FY23. Controlled restructuring (0.8%), low SMA pool (10bp) and 100% coverage on SR portfolio provide comfort and would keep credit costs under control. We reiterate BUY with a TP of INR700."

SBIN delivered a strong performance in FY23, propelled by steady business/revenue growth and controlled provisions. We estimate the momentum to remain healthy as utilization levels improve, while Retail growth is likely to remain steady, added the analyst.

SBI About: 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 Motilal Oswal. 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.