Analysts Bullish on SBI After Q4 Results

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Analysts Bullish on SBI After Q4 Results

By Aditya Raghunath

Investing.com -- On Friday, State Bank Of India (NS: SBI ) reported its results for the fourth quarter of FY21. It reported an 80.1% jump in its net profit for the fourth quarter of FY21 to Rs 6,450.7 crore from Rs 3,580.8 crore in the corresponding period in 2020.

The bank’s asset quality has improved. Gross non-performing assets (NPA) fell 46 basis points (bps) as a percentage of gross advances to 4.98% while net NPA fell 31 bps QoQ to 1.50%. The stock closed at Rs 401.1, up 4.33% on May 21.

Brokerages are bullish on the stock. HSBC maintains a buy rating on the stock with a target price of Rs 485, an upside of 21%.

Macquarie has an outperform call on SBI with a target price of Rs 450. It says that the biggest positive factor for the company has been asset quality, lower slippages and restructuring.

CLSA said, “State Bank of India’s 4QFY21 was a big beat, with just 22 bps of slippages and further net interest margin (NIM) improvement. We conservatively expect SBI ROEs to inch up to about 15% by FY23F; current valuations at 0.7x March-23 book are undemanding.” It has a target of Rs 600 on the stock.

Goldman Sachs (NYSE: GS ) is the most bullish on SBI. It has a buy rating with a target price of Rs 648, upgraded from Rs 585. That’s a potential upside of 61% from current levels.

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  • Biswajit datta @Biswajit datta
    All retailers will enter now... to make loss..
    Like 0
  • Biswajit datta @Biswajit datta
    All retailers will enter now... to make loss..
    Like 0
  • satyabrata nayak @satyabrata nayak
    Book the profit and exit....
    Like 0
  • Kailas Ganesh @Kailas Ganesh
    today profit boking will kick inn
    Like 0

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