Buy State Bank of India, target price Rs 483: ICICI Direct

ICICI Direct has buy call on State Bank of India with a target price of Rs 483. The current market price of State Bank of India is Rs 429.

Time period given by analyst is three months when State Bank of India price can reach defined target.
State Bank of India, incorporated in the year 1955, is a banking company (having a market cap of Rs 383669.05 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-2021.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 93266.94 Crore, down -9.83 % from last quarter Total Income of Rs 103430.64 Crore and up 6.00 % from last year same quarter Total Income of Rs 87984.33 Crore. The bank reported net profit after tax of Rs 7379.91 Crore in latest quarter.

Investment Rationale
The share price of SBI has rebounded after forming a higher base around Rs 400 levels over the past three months coinciding with May 2021 breakout area, suggesting elevated buying demand thus offering favourable risk-reward for fresh entryThe brokerage expects it to gradually head towards Rs 483 in coming months as it is 123.6% external retracement of recent breather (Rs 467-401).

Promoter/FII Holdings
Promoters held 56.9 per cent stake in the company as of June 30, 2021, while FIIs held 11.4 per cent, DIIs 24 per cent and public and others 7.6 per cent.