Jeffries retains buy on SBI, targer price Rs 370

Jefferies has retained buy rating on State Bank of India in the long term with a target price of Rs 370. The stock ended down 3.6% at Rs 274.65 on Thursday while the Sensex fell 382.91 points down at 37,068.93.

Company Financials

For the quarter ended 30-06-2019, the company has reported a consolidated interest income of Rs 45177.78 crore, up 3.00 % from last quarter interest income of Rs 43863.23 crore and up 13.18 % from last year same quarter interest income of Rs 39916.90 crore. The bank has reported net profit after tax of Rs 3383.79 crore in latest quarter.


Investment Rationale

In little more than a month, SBI's shares has corrected by 20% plus, said Jefferies. At 1 times consolidated P/B and 0.74 times core-bank P/B, valuations are below historical average and attractive, said Jefferies. While the macro looks fairly weak, Jefferies expects SBI to grow its market share but perhaps at lower NIM and fee, but may see some up tick in its credit costs.