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 858.75. SBI, incorporated in 1955, has a market cap of Rs 766446.37 crore.

State Bank of India's 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 30-06-2024, the company has reported a Consolidated Total Income of Rs 152125.05 crore, down -7.76% from last quarter Total Income of Rs 164914.36 crore and up 14.96% from last year same quarter Total Income of Rs 132332.78 crore. The bank has reported net profit after tax of Rs 19324.96 crore in the latest quarter.

Investment Rationale
According to Axis Securities, 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. The brokerage has recommended a BUY with a target price of Rs 1,030/share. The key risk is a 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.