Buy State Bank of India: Vaibhav Agrawal
There is no doubt that the results had the major negatives and clearly even we had to reduce our target price and we brought it down to 2800.
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| Updated: Vaibhav Agrawal, VP Research, Banking, Angel Broking, in a chat with ET Now, shares views on banking stocks.
What is the call on SBI, for a lot of number of shareholders who are holding this stock, what would your advice be?
The negatives got factored into these stock price soon after the results itself and at these levels, at these valuations, at least a reasonable buy though in the near term, clearly the overhang of low capital adequacy could remain on the banks. So the rights issue would be a key trigger even for a State Bank of India. If they do get the capital, then there will clearly be upside on these stocks because valuation wise, it is trading reasonably. There is no doubt that the results had the major negatives and clearly even we had to reduce our target price and we brought it down to 2800.
What is the call on SBI, for a lot of number of shareholders who are holding this stock, what would your advice be?
The negatives got factored into these stock price soon after the results itself and at these levels, at these valuations, at least a reasonable buy though in the near term, clearly the overhang of low capital adequacy could remain on the banks. So the rights issue would be a key trigger even for a State Bank of India. If they do get the capital, then there will clearly be upside on these stocks because valuation wise, it is trading reasonably. There is no doubt that the results had the major negatives and clearly even we had to reduce our target price and we brought it down to 2800.
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