Saturday, October 10, 2020

State Bank of India (SBI) | Strongest Recovering PSU Bank | Price Outlook

 

State Bank of India

Stock/Share Price: 198


➽ In this article we will discuss recent development in the StockShare of SBI in the Stock Market. Largest PSU bank over 1.77 lakhs crore market cap . 

Stock current book value is Rs 233 and trading at PE of 10 where as industrial PE is 14. SBI is currently a undervalue stock delivering excellent financial performance for the past 3 years with continuous decreasing NPA . 

Recent Key Strengths

Efficient in managing Assets to generate Profits - ROA improving since last 2 year

Growth in Net Profit with increasing Profit Margin (QoQ)

Growth in Quarterly Net Profit with increasing Profit Margin (YoY)

Annual Net Profits improving for last 2 years

Book Value per share Improving for last 2 years

Company with Zero Promoter Pledge

FII / FPI or Institutions increasing their shareholding

Companies with rising net profit margins - quarterly as well as TTM basis


Recent Weaknesses

MFs decreased their shareholding last quarter

Promoter decreasing their shareholding

Declining Net Cash Flow : Companies not able to generate net cash


Technical Chart 

sbi share price , finvestonline.com

After the recent fall from the level of 231 , SBI stock made a low of 175 recently and after consolidating it started rising again in a uptrend with good buying volume. 

So currently long position in the stock can be made in every correction for the level of 230 - 240 in upside in short term. 


Recent Valuation Summary

sbi share price , finvestonline.com

Stock current book value is Rs 233 and trading at PE of 10 where as industrial PE is 14. SBI is currently a undervalue stock delivering excellent financial performance for the past 3 years with continuous decreasing NPA . 

Recent Annual Results

sbi share price , finvestonline.com

Annual Sales and profit is increasing for the previous 3 years continuously.

Key Balance Sheet Summary

sbi share price , finvestonline.com

Reserve also increasing significantly for the 3 previous years.


Recent NPA

sbi share price , finvestonline.com

NPA reduced from 6 to 2.23 this year showing excellent performance.

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Disclaime
r- The information on this blog are based on my personal opinion and experience, it should not be considered professional financial investment advice and in no way it should be considered as a tip. We does not take any compensation of any kind whatsoever from any reader,user and company that are mention on this website.We are not SEBI registered financial advisor or analyst.


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