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Govt Bank Stock Showing Potential To Rally, HDFC Securities Assigns Buy Call

Govt Bank Stock Showing Potential To Rally, HDFC Securities Assigns Buy Call


oi-Renu Baliyan


HDFC Securities has assigned buy call to State Bank Of India (SBI) after the bank declared better than expected q4 results. SBI on May 18 announced 83.18% jump in its standalone net profit for March quarter to Rs 16,694.51 crore. Board of directors of SBI recommended a dividend of Rs 11.30 per equity share for FY 2023. If you buy SBI shares now, you can get likely return of 27% soon. Check details below:

SBI Declares Attractive Dividend: According to the BSE filing of the company, “Further, pursuant to Regulation 43 and Regulation 30 (6), we advise that the Central Board of the Bank, at its Meeting held on 18 th May, 2023, has declared a Dividend of Rs. 11.30 per equity share (1130%) for the financial year ended 31st March, 2023. The date of payment of Dividend is fixed on 14 th June, 2023 and the dividend warrants will be dispatched before the date of payment, which will be payable, in India, at par at all branches of State Bank of India, irrespective of the amount.”

Govt Bank Stock Showing Potential To Rally, HDFC Securities Assigns Buy Call

SBI Stock Performance & Return: The last trading price of SBI share is Rs 575.05 apiece on BSE. The stock’s 52-week high price is Rs 629.65 apiece and 52-week low price is Rs 430.80 apiece, respectively. The large bank company has a market capitalisation of Rs 5,13,209.81 crore. SBI share gave return of 28% in last 1-year, 50% in last 2-years, and 276% in last 3-years. In last 5-years, SBI stock jumped 140%.

SBI Valuation: According to HDFC Securities, “SBIN posted its highest-ever quarterly profit and a strong beat, led by healthy loan growth (+17% YoY), better fees and lower credit costs, having front-loaded its provisions during 9MFY23 on a prudent basis. We tweak our FY24E/FY25E estimates to factor in stronger loan growth and lower credit costs, partly offset by higher opex; maintain BUY with a revised SOTP-based target price of INR732 (core bank at 1.2x Mar-25 ABVPS).”

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 HDFC Securities. 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.

Story first published: Saturday, May 20, 2023, 19:10 [IST]

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