State Bank’s stock has given more than double returns in one year. That is, the shares of the bank have given returns of more than 100 percent to the investors of SBI. In this one year, it has reached Rs 427 from Rs 192.
However, for the past one month, SBI stock has been trading above the crucial ₹390 support even as Bank Nifty has made huge losses in the last three consecutive sessions. According to stock market experts, SBI shares will be one of the fastest growing stocks once the market stabilizes, as the stock is available at attractive book valuation and current account, savings account (CASA) ratio of 50 per cent.
Where will SBI’s stock go next?
Bank, auto, real estate sector got fundamental support from RBI’s monetary policy. As far as the rally in SBI stocks is concerned, Avinash Gorakshakar, Head of Research, Profitmart Securities, said, “SBI is one of those stocks that should be in one’s portfolio as it is a fast-growing market once the market stabilizes. SBI shares are available at an attractive price at the current market price, which is twice its current market rate. This valuation is very low as compared to other banking stocks.”
He said that if we look at SBI’s CASA ratio, it is also around 50 per cent, which means that the country’s largest bank is out of the asset quality pressure it was facing 2-3 years back. This has happened after the provisioning by the bank in the previous quarters and the bank’s March 2021 quarter results were quite positive from the market perspective.”
Avinash Gorakshakar says SBI’s stock has improved to the extent its fundamentals allow. Now, any further downside should be viewed as an opportunity. This stock is one of the multibagger stocks in India 2021.
sbi share price target and stop loss
Mudit Goyal, Senior Research Analyst, SMC Global Securities, while speaking on SBI Share Price Target said, “SBI shares have immediate support at ₹405 but strong support at ₹390. For those looking to take a positional call at the banking counter , One can buy the stock at current market price level of ₹ 421 per share on NSE for SBI share price target of ₹ 465. Once the stock breaks this target of ₹ 465, its next target will be ₹ 490. However Mudit Goyal of SMC Global Securities strictly advises investors to maintain a stop loss at ₹390 while taking positions in SBI Shares.