PSU Banking Stock To Buy, Likely To Give 18% Return, Soars 213.74% In 3 Yrs: Nirmal Bang

Renowned broking firm Nirmal Bang has placed a Buy rating on the State Bank of India (SBI) for high gains. It has assigned Rs. 680/share target price on the stock, claiming a potential upside of up to 18% from its current level.

SBI is India's leading Public Sector bank with a pan-India presence. It is a large-cap bank having a market capitalisation of Rs. 5,16,467 crore.

Confident of sustaining return ratios

Nirmal Bang said, "We recently hosted the management of State Bank of India (SBIN), represented by Mrs. Saloni Narayan - DMD (Finance), Mr. Pankaj Kumar - DGM (CPNC), Mr. Sanjay Ojha - AGM (IR) as part of the two-day NBIE investor conference to get an insight into the bank's business outlook. The management highlighted that the overall credit demand continues to be healthy. Further, it indicated that the bank has room for re-pricing in the MCLRlinked products and expects NIM to sustain at the current level of ~3.6%. The YONO 2.0 mobile app is expected to be launched by CY23-end and it would aid in gaining significant traction for existing as well as NTB customers."

Buy for a Target Price of Rs. 680/share

The brokerage said, "We remain positive on SBI on the back of: (a) Healthy credit growth (b) Multi-year low GNPA/NNPA ratios with benign credit cost guidance (c) Overall improvement in RoA/RoE at 1%/16.5% for FY23. We have a BUY rating on SBI with a target price (TP) of Rs680 (SOTP based)."

Stock Outlook - Current Market Price & Returns

On Friday, the share price of SBI closed 1.67% down at Rs. 578.70/share on NSE. The stock has fallen 1.45% in the past 1 week.

The stock jumped 23.93% in the past 1 month. Whereas, it has given 213.74% strong returns in the past 3 years. In 5 years, it gave 111.98% positive return.

On 15 December 2022, the stock hit 52-week high at Rs. 629.55/share and on 20 June 2022 it hit 52 week low at Rs. 430.70/share, respectively.

Disclaimer - The stock has been picked from the brokerage report of Nirmal Bang. 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 consult with certified experts before making any investment decision.