SBIN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.4
| Stock Code | SBIN | Market Cap | 9,86,245 Cr. | Current Price | 1,068 ₹ | 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 | 1,079 ₹ | DMA 200 | 989 ₹ |
| Chg in FII Hold | 1.07 % | Chg in DII Hold | -0.93 % | PAT Qtr | 21,028 Cr. | PAT Prev Qtr | 16,666 Cr. |
| RSI | 46.6 | MACD | 4.18 | Volume | 1,56,68,387 | Avg Vol 1Wk | 1,24,34,844 |
| Low price | 755 ₹ | High price | 1,235 ₹ | PEG Ratio | 0.42 | Debt to equity | 11.7 |
| 52w Index | 65.3 % | Qtr Profit Var | 24.5 % | EPS | 87.0 ₹ | Industry PE | 7.99 |
📊 SBIN (State Bank of India) reflects strong fundamentals with consistent profitability, attractive valuations, and robust growth metrics. ROE of 17.3% highlights efficient capital utilization, while quarterly PAT growth of 24.5% underscores earnings momentum. Despite weak ROCE (6.37%) and high leverage (Debt-to-Equity 11.7), the bank’s scale, government backing, and digital transformation initiatives provide resilience.
💰 Ideal Entry Price Zone: Between 1,000 ₹ – 1,060 ₹ (near 200 DMA support and below fair value). This range offers a margin of safety while aligning with long-term growth potential.
📈 Exit Strategy / Holding Period: Long-term investors can hold for 3–5 years, leveraging strong ROE and low PEG ratio (0.42). Exit can be considered if valuations stretch beyond P/E 18–20 or price exceeds 1,300 ₹ without earnings support. Dividend yield of 1.49% adds stability, making it suitable for compounding returns.
✅ Positive
- Strong quarterly profit growth (24.5% QoQ).
- EPS of 87 ₹ with attractive P/E of 13.1.
- ROE at 17.3% indicates efficient capital use.
- PEG ratio of 0.42 suggests undervaluation relative to growth.
- FII inflows (+1.07%) show foreign investor confidence.
⚠️ Limitation
- ROCE at 6.37% is weak compared to peers.
- High debt-to-equity ratio (11.7) adds risk.
- Industry P/E (7.99) is lower, indicating SBI trades at a premium.
- DII holdings declined (-0.93%), showing reduced domestic institutional support.
📉 Company Negative News
- Concerns over rising NPAs in the banking sector.
- Global interest rate volatility may impact margins.
📈 Company Positive News
- Record quarterly PAT of 21,028 Cr. highlights robust performance.
- Strong FII inflows reinforce foreign investor confidence.
🏦 Industry
- Banking sector remains resilient with improving credit growth.
- Government support and digital transformation initiatives strengthen long-term outlook.
🔎 Conclusion
SBIN is fundamentally strong with attractive valuations and growth metrics. Long-term investors can accumulate near 1,000–1,060 ₹ and hold for 3–5 years. Current holders should stay invested, monitoring debt levels and industry risks, while targeting exits above 1,300 ₹ if earnings momentum slows.