SBI stocks will give 50% return in the long term, SP increases the target price of SBI stocks so much

State Bank of India (SBI) share prices may rise by more than 20 in the long term. This is estimated by brokerage and investment firm S&P. S&P has set a target price of SBI stocks for the next 12 months at Rs 600 per share, which is 50% higher than the current share price of SBI. SBI stocks closed at Rs 387.90 on the NSE on Tuesday. Saurav Jain of brokerage firm S&P says that SBI shares can reach Rs 600 in the long term, as it will benefit from the economic recovery and this will increase the market share of SBI.

S&P said that for the past several years, SBI has consistently outperformed other government banks in terms of credit and deposit. SBI has the advantage of focusing with strategy on business or profit drivers with better management. Earlier brokerage firm Emkay Global revised SBI’s credit growth estimates for FY2022 and FY2023 to 10% and 14% from 8% and 12% previously. Let us tell you that the stock of SBI has increased by 50% in the last 3 months.

SBI may be re-rated due to this

Emkay said that SBI’s credit growth in the last 1 year has been impacted by the economic slowdown due to the corona virus epidemic and reduced corporate demand with retail growth. Because of this, SBI’s credit growth rate has come down. Right now it is at 6% on a yearly basis. However, it is now improving and it has reached the pre-covid period. Along with this, SBI has a very good position in Home Loans and Auto Loans and the bank is the market leader in both. At the same time, the bank’s corporate credit is also improving.

SBI’s good credit, improved loan book and improved risk-adjusted returns, coupled with a focus on profit while maintaining its market share, can lead to a bank re-rating, which will help its investors to earn higher profits this year. are supposed to.

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