Buy State Bank of India, target price Rs 1,030: Axis Securities

Axis Securities has a buy call on State Bank of India with a target price of Rs 1030. The current market price of State Bank of India is Rs 835.65. State Bank of India, incorporated in 1955, has a market cap of Rs 748954.11 crore.

State Bank of India key products/revenue segments include Interest & Discount on Advances & Bills, Income From Investment, Interest and Interest On Balances with RBI and Other Inter-Bank Funds for the year ending 31-Mar-2024.

Financials
For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 163802.38 crore, up 7.68% from last quarter Total Income of Rs 152125.05 crore and up 13.55 % from last year same quarter Total Income of Rs 144256.12 crore. The bank has reported net profit after tax of Rs 19782.76 crore in the latest quarter.

Investment Rationale

Amongst PSU banks, SBI is the best play on the growth trajectory of India?s economic growth supported by its (1) Comfortable footing on the C-D Ratio, (2) Healthy PCR, (3) Adequate capitalization and (4) improved asset quality outlook. Axis Securities recommends a BUY with a target price of Rs 1,030/share.
Key risk: Significant slowdown in credit growth Promoter/FII Holdings
Promoters held 57.51 per cent stake in the company as of 30-Sep-2024, while FIIs owned 10.71 per cent, DIIs 23.94 per cent.

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