Shares of State Bank of India (SBI) rose nearly 4.5 per cent during the morning trade on Monday after the country’s largest public-sector lender on Friday reported an 80 per cent jump in its net profit during the quarter ended March 2021.
The stock price of SBI rose 4.44 per cent to Rs 418.90 apiece on the BSE, while on the National Stock Exchange (NSE), it climbed 4.49 per cent to Rs 419.20 per share.
On Friday, the public sector banking behemoth had reported an 80 per cent surge in the standalone net profit at Rs 6.450.75 crore for the fourth quarter (Q4), aided by a decline in bad loans.
At 11:48 am, the scrip was trading at Rs 410.90, up 2.44 per cent on the BSE while on NSE it was at Rs 410.95, up 2.43 per cent. So far in trade, over 46.39 lakh shares were traded on the BSE and over 9.18 crore shares exchanged hands on the NSE.
“Overall, the bank is making strong progress on earnings normalization (FY21 RoE of ~9.3 per cent). We expect it to deliver FY22E/FY23E RoE of 13.9 per cent/15 per cent. We maintain our BUY rating with a revised TP of Rs 530/share (1.1x FY23E ABV+INR187/share from subsidiaries), Motilal Oswal Institutional Equities said in its Morning India report earlier in the day.
Analysts at Nomura see an upside of 37 per cent in SBI stock, it has set a “Buy” rating with a target price of Rs 550 on the scrip.
“We marginally tweak EPS for FY22-23F and introduce FY24F, forecasting 15 per cent BVPS CAGR. We retain TP at Rs 550, which values the stock at 1.4x P/B FY22F book and 8x P/E FY23F consolidated earnings,” they said.