Shares Of This PSU Banking Stock May Jump 11% In 3 Months, Buy Is The Call From ICICI Direct

ICICI Direct has assigned buy rating to State Bank of India stock with a target price of Rs 634 apiece. If you buy SBI share today, you can expect to receive potential 11.23% return. The analyst has given a time period of 3 months when the stock will achieve the specified target price.

According to ICICI Direct, "Nifty PSU bank index logged a resolute breakout from four year's downward sloping trend line, indicating a structural turnaround. Within the PSU banking space, we remain constructive on State Bank of India (SBI) shares as it witnessed a faster pace of retracement after retesting 12 month's range breakout area of ₹546 thereby confirming a structural turnaround. This augurs well for the next leg of the up move."

Check key takeaways below:

1. SBI Stock Outlook

The last trading price of SBI is Rs 570 apiece with 52-week high at Rs 586 apiece and 52-week low at Rs 425 apiece, respectively. The bank has a market capitalisation of Rs 5,09,372.21 crore.

2. SBI 5-Years Return

The stock has given a return of 83% in last 5 years, 102% in last 3-years, and 14% in last 1 year. The shares have rallied 9% in last 1-month only.

3. SBI Future Growth Prospects

The bank's focus on a calibrated approach on growth, balance sheet strengthening coupled with strong liability profile along with healthy capitalisation make it well placed to accrue earnings growth ahead. Recent quarter's performance was decent on the business growth front with advances growing 14.9% YoY driven by retail & corporate segment. We remain positive on future growth prospects with unlocking of subsidiaries value to aid valuations, added ICICI Direct.

4. SBI Valuation

According to ICICI Direct, "We expect SBI share price to accelerate upward momentum and gradually head towards Rs 634 in coming months as it is implied target of past six week's consolidation ( Rs 578-516) coinciding with 161.8% external retracement of February-March decline ( Rs 546-425). Among oscillators, weekly MACD bounced from its nine period's average, indicating acceleration of upward momentum."

5. 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.

 

Disclaimer

The stock has been picked from the brokerage report of ICICI Direct. 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.