Home / Markets / Stock Markets /  SBI shares: Why some experts are bullish even after 100% return in a year

SBI share price: The State Bank of India (SBI) shares have delivered more than 100 per cent return to its share holders in the last one year by jumping from 192 to 421 — logging 116 per cent rise in this period. However, for the last one month, SBI share have been trading sideways sustaining above the crucial 390 support even when the Bank Nifty witnessed bloodbath in the last three successive trade sessions. According to stock market experts, SBI shares would be one of the fast moving stocks once the market gets stablised as the stock is available at an attractive price to book valuations and current account savings account or CASA ratio of 50 per cent.

SBI share price prediction

Highlighting the fundamentals supportive for the SBI share price rally; Avinash Gorakshkar, Head of Research at Profitmart Securities said, "SBI is one of those stocks that one should have in one's portfolio as it would be one of the fast moving stocks once the market stablises. At current market price, SBI shares are available at attractive price to book value, which is double of its current market rate. This valuation is very low in comparison to other banking stocks. If we look at the CASA ratio of SBI, it is also at around 50 per cent that means the largest Indian commercial bank is out of the asset quality pressure it was facing 2-3 years ago. This has happened after the provisioning done by the bank in previous quarters and the March 2021 quarter result of the bank was quite positive from the market perspective."

Avinash Gorakshkar of Profitmart Securities said that SBI shares have corrected to the extent its fundamentals allow. Now, any further dip should be seen as accumulating opportunity and one can take positional call in the counter irrespective of the fact the stock is one of the multibagger stocks in 2021 in India.

SBI share price target

Speaking on the SBI share price target Mudit Goel, Senior Research Analyst at SMC Global Securities said, "SBI shares have immediate support at 405 but it has strong support at 390. Those who want to take positional call in the banking counter can buy SBI stocks at current market price of 421 per stock levels at NSE for the immediate target of 465. Once the stock breaks this 465 target, its next immediate target will be 490." However, Mudit Goel of SMC Global Securities strictly advised investors to maintain stop loss at 390 while taking position in SBI stocks.


Asit Manohar

Chief Content Producer at Live Mint Digital Team
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