Positive on SBI: Gajendra Nagpal
There will be a serious care of a re-rating even from the current levels and also and 20-25% over next 12 months could be an easy thing to achieve.
By 
|
| Gajendra Nagpal, CEO, Unicon Financial Solutions, in a chat with ET Now talks about SBI.
Do you think SBI could give a significant upside?
SBI if you compare it with other banks, particularly private sector banks, ICICI Bank or HDFC Bank or the other midcap private banking spaces, there has been some mild underperformance by the market leader but eventually we have been watching it that the prices are already on the rise and some of the banking stocks have reached a valuation which by no imagination can be called as good as they are all richly valued at the moment. So SBI being the legacy that it has being the branch network that it has and post the new ULIP thing coming up, they are uniquely poised to take advantage of the insurance opportunity also, which is going to be seriously in their favour because of their goodwill, because of their network and everything where all the other banks with insurance subsidiary is going to be a drag on them, SBI is going to be better place in that sense. So to that extent, SBI would come on its own. It is obviously coming up but there would be a time coming in and there will be a serious care of a re-rating even from the current levels and also and 20-25% over next 12 months could be an easy thing to achieve.
Do you think SBI could give a significant upside?
SBI if you compare it with other banks, particularly private sector banks, ICICI Bank or HDFC Bank or the other midcap private banking spaces, there has been some mild underperformance by the market leader but eventually we have been watching it that the prices are already on the rise and some of the banking stocks have reached a valuation which by no imagination can be called as good as they are all richly valued at the moment. So SBI being the legacy that it has being the branch network that it has and post the new ULIP thing coming up, they are uniquely poised to take advantage of the insurance opportunity also, which is going to be seriously in their favour because of their goodwill, because of their network and everything where all the other banks with insurance subsidiary is going to be a drag on them, SBI is going to be better place in that sense. So to that extent, SBI would come on its own. It is obviously coming up but there would be a time coming in and there will be a serious care of a re-rating even from the current levels and also and 20-25% over next 12 months could be an easy thing to achieve.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
