Buy The SBI Stock Says Prabudas Lilladher For An Upside Of 34%
Broking firm Prabhudas Lilladher ( PL) has recommended buying the stock of State Bank of India for a target price of Rs 730.
This implies an upside of nearly 34% from the current levels. SBI: Net interest income a beat, says PL
According to PL Opex was tad more at Rs 243 billion.
Given stronger NII and other income, core PPOP was a beat at Rs223bn ( PLe Rs 212bn).
GNPA was lower and improved 38bps QoQ to 3 .14%.
Provisions were a miss at Rs57.6bn ( PLe Rs 34bn) owing to std. asset provision of Rs42.3bn. PAT was a beat at Rs142bn ( Ple Rs 135bn).
Adani exposure at 0 .88%
According to Prabhudas Lilladher, the wage revision is to be Rs 5 bn per month.
"While Adani group exposure is 0 .88 % of total loans, same is below large exposure framework ( LEF) and till date there have been no issues on loan repayment or servicing.
Loans are extended against operating businesses and assets that generate cash.
Payments relating to loans sanctioned for under- construction projects are being made on schedule.
Buy the stock of SBI with a price target of Rs 730, says PL
Bank sees FY 2 4 E loan growth at 14 - 16%. Slower deposit growth may not be an issue in near term, as there is excess SLR of Rs 3 .2 trn.
Asset quality was stable QoQ although bank created std. buffer asset provision of Rs42.3bn. Adani group exposure is 0 .88 % of total loans.
The stock is picked from the brokerage report of Prabhudas Lilladher.
Greynium Information Technologies, the brokerage house and the author are not liable for any losses caused as a result of decisions based on the article. advises users to check with certified experts before taking any investment decision.
By Sunil Fernandes Goodreturns source: Dailyhunt