SBI has joined the 5 lakh crore club; shares are at an all-time high; buy or sell?
SBI Stock Price: The stock of the country’s largest state-run bank, State Bank of India (SBI), is seeing a rise today. PSU Bank stock today gained 1.5 percent to reach a price of Rs 566, which is a 1-year high for the stock. With this, the market cap of the bank has crossed 5 lakh crores today. It is the third bank after HDFC Bank and ICICI Bank to join the 5 lakh crore market cap club. Brokerage houses are bullish on bank shares and further bullishness is expected. The stock may cross the 600 level in the coming days.
20% growth this year.
This year, SBI’s earnings have increased by about 20 percent. At the same time, the stock has gained about 31% in the last year.During 1 year, the share price rose from Rs 433 to Rs 566. Rs. 425 is the 1-year low for the share.
5.04 lakh crore market capitalization
The rise in the shares of SBI today means it has reached the club of companies listed on the BSE whose market cap is 5 lakh crores. In this club, RIL is at number 1 and TCS is at number 2. whereas HDFC Bank, Infosys, ICICI Bank, and HUL are also above SBI. Airtel, Adani Transmission, and Bajaj Finance are at numbers 8, 9, and 10.
The stock will rise further.
In its recent report, brokerage house Upstox has given a target of Rs 625 while giving a buying opinion in SBI’s stock. The brokerage house says that in the June quarter, due to low operating profit and weak other income, profits were affected. However, due to control over OPEX, PPOP grew at a 14 per cent year-on-year rate. The bank’s loan growth has been strong, and asset quality has also been good. Better growth is expected in NII in the coming days. The brokerage expects the bank’s earnings to grow at a CAGR of 29 percent between FY22 and FY24. The RoA/RoE of the bank in FY24E is likely to be around 0.9%/17%. The brokerage house LKP has also given BUY advice in the recent report expressing confidence in the stock and has given a target price of Rs 642.