Brokerages have raised their price targets on after the country’s largest lender by assets reported an 80% rise in net profit for the quarter ended March on Friday. The stock ended up 4.3% at Rs 401.10 on Friday.
HSBC has maintained buy and raised target price to Rs 485 from Rs 475 and Haitong Securities has raised target price to Rs 480 from Rs 444 while retaining an outperform rating.
ICICI Securities, CLSA and Motilal Oswal have also maintained buy.
“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,” said CLSA, revising target price to ?650 from ?600.
Brokerages also said SBI’s asset quality performance is better than peers which makes the steep valuation discount to private peers unwarranted.
said SBI is its top pick in the banking space.
