Analysts see more headroom for SBI stock
May 24, 2021
Post Q4, brokerages see 30% rise due to its consistent performance
After adding 4 per cent post result announcement on Friday, shares of State Bank of India surged further on Monday. The stock, after hitting a high of ₹418.90, closed the day at ₹410.15, up 2.3 per cent, over the previous day s close.
Analysts have re-rated the public sector banking major with higher target price, following its strong asset-quality and consistent performance.
Brokerages including Nomura, Morgan Stanley and JP Morgan expect the stock to climb at least 30 per cent gains from current levels.
SBI’s standalone net profit surged 80 per cent (y-o-y) in the fourth quarter of FY22 on the back of a dip in loan loss provisioning and healthy growth in the net interest income at ₹6,451 crore, as against ₹3,581 crore reported during year-ago period. The SBI board has also declared a dividend of ₹4 a share for FY21.