At current valuations there is scope of downside for SBI: Anish Damania

Anish Damania, Head - Institutional Equity, Emkay Global Financial Services Ltd

In terms of the sell idea you seem to be rather bearish in fact on stocks like an SBI. Now we have seen also that most of these banking counters have been drooling out money to a lot of the telecom players for their 3G auctions. SBI also providing a 20,000 Crore loan for telecom operators this time around in light of that how do you view a stock like SBI?

I think that is not a very large portion of their total assets what we feel is that given the fact that the stock has run up quite a lot. It has probably already discounted a lot of positives but if you look at the last quarter's result there were causes of worry which were creeping up. We would like to see more results going ahead over the next two quarters so till that time we feel that the stock would remain under pressure. We feel at the current valuations there is a scope of downside. We are looking at about 15% underperformance of this stock over the next one year.