⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
SBIN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.3
| Stock Code | SBIN | Market Cap | 9,87,910 Cr. | Current Price | 1,070 ₹ | High / Low | 1,235 ₹ |
| Stock P/E | 13.1 | Book Value | 585 ₹ | Dividend Yield | 1.49 % | ROCE | 6.37 % |
| ROE | 17.3 % | Face Value | 1.00 ₹ | DMA 50 | 1,099 ₹ | DMA 200 | 966 ₹ |
| Chg in FII Hold | 0.77 % | Chg in DII Hold | -0.61 % | PAT Qtr | 21,028 Cr. | PAT Prev Qtr | 16,666 Cr. |
| RSI | 37.7 | MACD | -17.0 | Volume | 1,14,36,999 | Avg Vol 1Wk | 1,54,41,588 |
| Low price | 730 ₹ | High price | 1,235 ₹ | PEG Ratio | 0.43 | Debt to equity | 11.7 |
| 52w Index | 67.2 % | Qtr Profit Var | 24.5 % | EPS | 87.0 ₹ | Industry PE | 7.57 |
📊 Financial Overview
- Revenue & Profit Growth: Quarterly PAT rose from ₹16,666 Cr. to ₹21,028 Cr. (24.5% growth).
- Margins: ROE at 17.3% is strong, though ROCE at 6.37% reflects modest efficiency.
- Debt: Debt-to-equity ratio of 11.7 is high, typical for banks but a risk factor.
- Cash Flow: Stable due to strong deposit base and diversified lending operations.
💹 Valuation Indicators
- P/E Ratio: 13.1 vs Industry PE of 7.57 → premium valuation compared to peers.
- P/B Ratio: Current Price ₹1,070 vs Book Value ₹585 → ~1.83x, reasonable for a leading bank.
- PEG Ratio: 0.43 → indicates undervaluation relative to earnings growth.
- Intrinsic Value: Estimated fair value near ₹1,150–1,200, aligning with recent highs.
🏦 Business Model & Competitive Advantage
- India’s largest public sector bank with extensive branch network and digital adoption.
- Government backing ensures stability and credibility.
- Competitive edge in scale, low-cost deposits, and diversified lending portfolio.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive between ₹950–1,020 given RSI at 37.7 (oversold zone).
- Long-Term Holding: Strong candidate for 3–5 year horizon with steady growth and dividends.
✅ Positive
- Quarterly profit growth of 24.5%.
- High ROE at 17.3% indicates strong shareholder returns.
- PEG ratio highlights undervaluation relative to growth potential.
⚠️ Limitation
- ROCE at 6.37% shows limited efficiency in capital usage.
- High debt-to-equity ratio (11.7) increases risk in stressed credit cycles.
- P/E higher than industry average, reflecting premium valuation.
📉 Company Negative News
- Concerns over rising NPAs in the banking sector.
- Global interest rate volatility may pressure margins.
📈 Company Positive News
- Strong quarterly earnings beat expectations.
- Improved FII holdings (+0.77%) show foreign investor confidence.
- Digital banking initiatives expanding customer base.
🏭 Industry
- Banking sector is cyclical, influenced by interest rates and credit demand.
- Industry PE at 7.57 shows peers are cheaper, but SBI commands premium due to scale and trust.
- Government reforms and infrastructure push support long-term growth.
🔎 Conclusion
SBI remains a fundamentally strong banking leader with consistent profitability, government support, and digital transformation. While debt levels and modest ROCE are limitations, its strong ROE, undervalued PEG ratio, and growth trajectory make it a solid long-term investment. Entry around ₹950–1,020 offers a favorable risk-reward, with potential upside toward ₹1,200+ in the medium term.