Stocks To Buy: Buy SBI For Rs. 600-650 Target Price; Govt's Infra Push To Boost The Lender's Credit Offtake

SBI after its robust Q3 financials for the ongoing fiscal year has been given a buy. Last the stock on Friday after hitting a fresh 52-week high price of Rs.530.3 per share on the NSE. And the 52-week high hit has been of Rs. 546.4 per share.

Now profits at the bank inching higher and the GNPAs at the lender as a % of total advances have been lower by 40bps sequentially as well as on a YoY basis."While the elevated level of slippage in the first quarter of the year was due to exceptional circumstances, we have been able to pull back a significant portion of those slippages. This indicates our long-term strategy of maintaining asset quality through quality credit underwriting using analytics for early warning signals and focus on collections which have now started delivering consistent results," said Khara.

SBI's Q3fy22 results

The bank's profit during the period has surged by 62% YoY to Rs. 8431.9 crore. Its net interest income has increased by 6.48% as against the corresponding period a year ago. The bank's home loan portfolio has also recorded a 24% YoY surge as also the growth in SME and corporate segment.

The bank's total deposits also logged a growth of 8.83 per cent and the saving bank deposits growth of 10.30 per cent during the third quarter. The current account deposits grew by 7.89 per cent compared with the corresponding period of the previous year.

Buy SBI- for target price of Rs, 600-650, implying an upside of 22.5% in the short to medium term

The buy in the country's largest lender has been given a 'Buy' for a target price of Rs. 600-650 per share. This is on the back of healthy financials as also government's marked thrust on infra in the latest Budget 2022 which shall boost the lender's credit offtake. The infra push is seen to augur well for PSU banks owing to the liquidity demand foreseen in the infra segment. So, investors are given advice to add and hold the scrip of SBI for the short to medium term.

Brokerage’s take on SBI:

Sumeet Bagadia, Executive Director at Choice Broking said, "SBI shares are looking positive on chart pattern. On Monday, if the stock opens ₹5 to ₹10 higher from its Friday close, then one can buy SBI shares at current market price for immediate short term target of ₹580 to ₹600 maintaining stop loss at ₹525 apiece levels."

Disclaimer:

 Investing in equities is risky and investors must therefore understand the risk. The author and Greynium Information Technologies Pvt Ltd would not be responsible for any losses caused based on the article. Investors should exercise caution on account of heightened volatility in the markets currently.